XRP Ledger AMM v2 Proposal Adds StableSwap and Concentrated Liquidity

• XRPL Foundation published a new XRP Ledger Standard for AMM v2.
• The proposal adds StableSwap and concentrated liquidity curves to improve capital efficiency.
• Vet said the upgrade could improve RLUSD/USDC pricing and help liquidity providers focus capital.

XRP Ledger developers are moving toward a larger DeFi upgrade after the XRPL Foundation published a new standard for AMM v2. The proposal adds new pool curves designed to improve pricing for stablecoins, FX markets, RWAs, and other assets traded on the XRPL DEX.

Meanwhile, the network is also facing a separate technical deadline. Validators and infrastructure providers must upgrade to XRPL version 3.1.3 before the fixCleanup3_1_3 amendment activates, or older nodes may lose proper communication with the network.

XRPL AMM v2 Adds New Pool Curves

XRPL Foundation said AMM v2 introduces new pool curves for the XRP Ledger’s decentralized exchange. The proposal adds StableSwap and concentrated liquidity alongside the existing constant product model.

According to the Foundation, these curves are meant to increase capital efficiency and stabilize pricing across markets that need tighter spreads. That includes stablecoins, foreign exchange pairs, tokenized real-world assets, and other high-liquidity pools.

The GitHub proposal, listed as “Amendment XLS: AMM Swappable Curves,” extends XLS-30 with a pluggable curve system. Pool creators would select an invariant function at pool creation. The first proposed set includes constant product, concentrated liquidity, and StableSwap.

This matters as the current XRPL AMM uses a constant product model with uniform liquidity. That design works broadly, but it can be inefficient for correlated assets such as stablecoin pairs. StableSwap targets that gap by reducing slippage in pools where prices should remain close.

Related: XRP Price Prediction: Bearish Momentum Builds as Open Interest and Flows Weaken

Vet Says Stablecoins Could Benefit

Meanwhile, XRPL validator Vet said AMM v2 fits the next phase of liquidity and tokenization on the network. He pointed to asset pools such as RLUSD/USDC, where StableSwap could offer better pricing along the full liquidity range.

Additionally, concentrated liquidity would allow liquidity providers to deploy capital within selected price ranges instead of spreading it across the entire curve. That could make liquidity deeper where trades actually happen, which may help reduce slippage for active markets.

The proposal also leaves room for future curve types. The GitHub document notes that CurveType 3 is reserved for weighted pools, while CurveType 4 is reserved for a fully programmable AMM model. However, the initial focus remains on protocol-compliant curves that can run directly inside XRPL.

Notably, the Foundation framed the upgrade as “new curves, same ledger.” That keeps the pitch focused on improving liquidity mechanics without changing XRPL’s broader base structure.

Related: XRPL Ledger Validators Must Upgrade to 3.1.3 by May 27 or Face Network Lockout

Validators Face 3.1.3 Deadline

The AMM v2 proposal arrives as XRPL operators face another urgent network requirement. Coin Edition reported that validators, exchanges, NFT marketplaces, and infrastructure providers must upgrade to XRPL version 3.1.3 before May 27.

The vet warned that nodes still running old software could become “amendment blocked.” In practice, those nodes may fail to process transactions, validate ledger states, join consensus, or communicate properly with upgraded peers.

XRPL version 3.1.3 was released on May 8 with the fixCleanup3_1_3 amendment set as “default yes.” Unlike optional amendments that require active validator support, this update pushes operators to upgrade if they want to stay aligned with the main ledger rules.

Only about 40% of the network had reportedly completed the update more than a week after release. That raised coordination concerns ahead of activation.

For XRPL, both developments point to the same broader phase. Developers are preparing deeper liquidity tools through AMM v2, while validators must complete the 3.1.3 upgrade to keep the network synchronized before the amendment takes effect.