The XRP Ledger Foundation has published a new draft standard for AMM v2, proposing a major upgrade to the XRP Ledger decentralized exchange. The standard introduces new pool curve models designed to improve liquidity, pricing stability and capital efficiency across different asset markets on the XRPL DEX.
The proposal would expand the current automated market maker framework by allowing liquidity pools to use more than one pricing model. Under the existing XLS-30 AMM design, pools rely mainly on a constant product model. The new AMM v2 standard would allow pool creators to choose curve types that better match the assets being traded.
The XRP Ledger Foundation said the new standard includes StableSwap and Concentrated Liquidity curves. These models are intended to support stablecoins, foreign exchange pairs, real-world assets, and other correlated tokens that require tighter pricing and lower slippage.
XRPL DEX Prepares for Multi-Curve AMM Design
The AMM v2 proposal would introduce a pluggable pool structure for the XRPL DEX. This means liquidity pool creators could select from different curve models depending on market conditions and asset type.
The first models expected under the proposed framework include Constant Product pools, Concentrated Liquidity pools, and StableSwap pools. Constant Product pools are similar to the design used by Uniswap v2 and are suitable for more volatile asset pairs.
Concentrated Liquidity pools are inspired by Uniswap v3. They allow liquidity providers to place funds within selected price ranges rather than across the full market range. This can improve capital use when trading stays inside active price bands.
StableSwap pools are designed for assets that trade closely together, such as stablecoins, tokenized cash products, FX pairs, and certain real-world asset markets. These pools are intended to provide smoother pricing and lower slippage when assets have similar values.
Stablecoins, FX and RWAs Gain New Liquidity Tools
The proposed standard is expected to improve trading conditions for assets such as RLUSD, USDC and other stable or correlated tokens on the XRP Ledger. Lower slippage and tighter spreads are key goals of the upgrade.
For liquidity providers, the AMM v2 framework may allow more targeted use of capital. Instead of spreading liquidity across a wide price range, providers could deploy funds where trading activity is most likely to occur.
The XRP Ledger Foundation said the changes are intended to support deeper liquidity and more stable pricing on the XRPL DEX. These features are relevant for institutional DeFi applications, where predictable execution and market depth are important.
The upgrade also supports the XRP Ledger’s wider tokenization focus. Real-world assets, stablecoins and FX markets are growing areas of blockchain finance, and AMM design can affect how efficiently these assets trade on-chain.
XRP Ledger Ecosystem Expands DeFi and Commerce Use
The AMM v2 proposal follows other developments around the XRP Ledger ecosystem. Yellow noted that it integrated with the XRP Ledger EVM Sidechain in October, allowing users to access high-frequency trading, non-custodial clearing, and cross-chain liquidity for digital assets and real-world assets.
The EVM Sidechain connection gives Ethereum-compatible applications another route into the XRP Ledger ecosystem. It also supports broader DeFi tooling while keeping links to XRPL liquidity and asset markets.
Separately, as we reported, RealFi Payment Solutions is working with Shopify to develop an XRP Ledger-powered payment and rewards application for global e-commerce merchants. Shopify serves millions of merchants, making the partnership another example of efforts to connect XRPL-based infrastructure with retail payment use cases.
The XRP Ledger Foundation’s AMM v2 standard remains a proposal, and adoption will depend on ecosystem review and implementation. If approved and deployed, the upgrade would expand XRPL DEX functionality beyond its current AMM structure.
