XRPL's native AMM has lacked capital-efficient curve types since its 2024 launch, a gap a new draft amendment aims to close.
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XRPL amendment adds 3 AMM curve types to close DeFi gap
XRPL's native AMM has lacked capital-efficient curve types since its 2024 launch, a gap a new draft amendment aims to close.
A draft amendment filed Tuesday would upgrade XRPL's AMM with three curve types, letting liquidity providers choose how their pools price assets.
The proposal, authored by XRPL core developers Denis Angell and Roman Thpt, was filed on the XRPL standards repository and remains in draft, requiring a separate amendment vote before activation.
The three curve types — constant product, concentrated liquidity and StableSwap — address a long-standing capital efficiency problem. The current setup spreads liquidity uniformly across every possible price, which works for volatile pairs but wastes capital on stablecoin pairs and correlated assets. Concentrated liquidity lets providers target a narrow band where most trades occur, producing more depth per dollar deposited. StableSwap is designed for near-1:1 assets like dollar-pegged stablecoins. A fourth programmable curve, Smart AMM, is reserved for a follow-up specification.
The upgrade comes as over $3 billion in tokenized real-world assets sit on XRPL, including a Ripple-JPMorgan pilot earlier this month that processed a tokenized Treasury redemption in under five seconds. Whether the amendment lands in time to compound that institutional narrative depends on the amendment process, which can stretch for months and is not guaranteed to pass.
Concentrated liquidity has become the standard for capital-efficient AMMs across major DeFi ecosystems, with around 60% of AMM volume now running through some version of it, according to the proposal's data citations. XRPL's native AMM has been missing that feature since its launch in 2024.
The amendment keeps existing pools untouched. Pools created before the new curves activate remain on the constant product model with no migration required. Pool creators selecting from the new menu would do so at creation time, with the curve type locked in for the pool's lifetime.
XRP traded at $1.34 in U.S. morning hours Tuesday.
The draft amendment represents the latest effort to strengthen XRPL's DeFi infrastructure as institutional tokenization volume grows. If passed, the upgrade could attract more liquidity providers and deepen on-chain markets for tokenized assets, potentially boosting XRPL's competitiveness against Ethereum and Solana-based DeFi protocols. The amendment process will determine whether that potential materializes.
This article is for informational purposes only and does not constitute investment advice.
