A proposed amendment aims to enhance the XRP Ledger's automated market maker by introducing three new curve types, potentially offering liquidity providers improved capital deployment options and addressing a significant gap in XRPL DeFi.
By Shaurya Malwa|Edited by Jamie CrawleyUpdated May 26, 2026, 3:43 p.m. Published May 26, 2026, 3:34 p.m. 2 min readMake preferred onKey Highlights:
- The proposed amendment, titled “AMM Swappable Curves,” would enhance the XRP Ledger’s automated market maker by integrating three new curve types: constant product, concentrated liquidity, and StableSwap, with a Smart AMM to follow.
- This modification aims to allow liquidity providers to select how their pools price assets, enhancing capital efficiency for both volatile pairs and stablecoins, while existing pools will remain on the current constant product model.
- The proposal emerges as over $3 billion in tokenized real-world assets, including a recent pilot project between Ripple and JPMorgan, reside on XRPL, although its effects on XRP and DeFi activity depend on a lengthy amendment process that may not guarantee success.
The XRP Ledger may be on the verge of addressing one of its major shortcomings as a DeFi platform.
A draft proposal named "AMM Swappable Curves" was submitted to the XRPL standards repository on Tuesday. This proposal seeks to enhance the automated market maker functionality by introducing three new pluggable curve types: constant product, concentrated liquidity, and StableSwap.
A fourth curve type, known as Smart AMM, is planned for a subsequent specification. Automated market makers (AMMs) are decentralized exchanges that facilitate trades against a pool of deposited tokens rather than directly between buyers and sellers.
The amendment would enable liquidity providers on the XRPL to determine how their pools price assets. The existing model distributes liquidity evenly across all price points, which is effective for volatile assets but inefficient for stablecoin pairs and closely correlated assets.
Concentrated liquidity allows providers to focus their resources on a specific price range where most transactions occur, yielding greater usable depth for each dollar invested. StableSwap is tailored for assets that trade close to a 1:1 ratio, such as dollar-pegged stablecoins or equivalent wrapped assets.
The XRPL has been steadily accumulating institutional tokenization activity, with over $3 billion in tokenized real-world assets currently on the blockchain, including a recent Ripple-JPMorgan pilot earlier this month that executed a tokenized U.S. Treasury redemption in less than five seconds.
However, simply moving institutional capital on-chain is only one aspect of a holistic financial strategy. Allowing that capital to generate yield, be borrowed against, or trade effectively with other tokenized assets necessitates functional DeFi infrastructure.
Concentrated liquidity has become a benchmark for capital-efficient AMMs across leading DeFi ecosystems, with approximately 60% of AMM volume utilizing some variant of it, according to the proposal's references. The XRPL's existing AMM has lacked this feature since its launch in 2024.
The proposed amendment will not affect existing pools. Pools established prior to the introduction of the new curves will remain on the constant product model without any migration required. Pool creators opting for the new options will select their curve type at the time of pool creation, which will be fixed for the pool's duration.
As of Tuesday morning, XRP was trading at $1.34. The success of the AMM upgrade in enhancing institutional interest largely hinges on the lengthy amendment process, which may take several months and does not guarantee passage.
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