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Key Takeaways
- The XRPL Foundation proposed AMM v2, a pluggable curve system extending XLS-30 with StableSwap and concentrated liquidity designed to improve capital efficiency and reduce slippage for stablecoin pairs, FX markets, and tokenized real-world assets.
- Concentrated liquidity would allow liquidity providers to deploy capital within selected price ranges rather than uniformly across the full curve, potentially deepening liquidity at targeted price levels.
- Validators faced a May 27 deadline to upgrade to XRPL version 3.1.3 ahead of the fixCleanup3_1_3 amendment’s activation, with only approximately 40% of the network having completed the update nearly three weeks after its May 8 release.
The XRPL Foundation has published a proposal for AMM v2, a DeFi upgrade that would add StableSwap and concentrated liquidity pool curves to the XRP Ledger’s decentralized exchange. In a separate development, validators faced a May 27 deadline to upgrade to XRPL version 3.1.3 ahead of the fixCleanup3_1_3 amendment’s activation, with only around 40% of the network having completed the update nearly three weeks after its May 8 release.
AMM v2 Proposal Extends XLS-30 With a Pluggable Curve System
The GitHub proposal, listed as “Amendment XLS: AMM Swappable Curves,” extends XLS-30 with a pluggable curve system that would allow pool creators to select an invariant function at the time of pool creation.
The first proposed set of curves includes constant product, concentrated liquidity, and StableSwap. The XRPL Foundation said the new curves are designed to increase capital efficiency and stabilize pricing across markets that require tighter spreads, including stablecoin pairs, foreign exchange pairs, tokenized real-world assets, and other high-liquidity pools.
The Foundation described the upgrade as “new curves, same ledger,” calling it a change to liquidity mechanics rather than to XRPL’s underlying structure. The current XRPL AMM uses a constant product model with uniform liquidity, which the proposal describes as inefficient for correlated assets such as stablecoin pairs.
StableSwap targets that gap by reducing slippage in pools where prices are expected to remain close. The proposal also reserves space for future curve types, designating CurveType 3 for weighted pools and CurveType 4 for a fully programmable AMM model. The initial focus, however, remains on protocol-compliant curves designed to run directly inside XRPL.
XRPL Validator Vet Points to RLUSD/USDC Pools as StableSwap Use Case
XRPL validator Vet said AMM v2 is well-suited for the network’s growing liquidity and tokenization activity, pointing specifically to asset pools such as RLUSD/USDC as candidates for improved pricing under StableSwap across the full liquidity range.
Vet also noted that concentrated liquidity would allow liquidity providers to deploy capital within selected price ranges rather than spreading it uniformly across the entire curve, which he said could deepen liquidity and reduce slippage at those levels.
Only 40% of Network Completed 3.1.3 Upgrade Nearly Three Weeks After Release
Validators, exchanges, NFT marketplaces, and infrastructure providers faced a deadline to upgrade to XRPL version 3.1.3 before May 27, according to Coin Edition. XRPL version 3.1.3 was released on May 8 with the fixCleanup3_1_3 amendment set as “default yes,” meaning operators must upgrade to remain aligned with the main ledger rules rather than actively vote to adopt the change.
Vet warned that nodes still running older software could become “amendment blocked,” potentially failing to process transactions, validate ledger states, join consensus, or communicate properly with upgraded peers. Only approximately 40% of the network had completed the update nearly three weeks after the May 8 release, according to Vet.
AMM v2 and 3.1.3 Upgrade Address Separate but Concurrent XRPL Priorities
The AMM v2 proposal targets stablecoin pairs, FX markets, and tokenized real-world assets, with the XRPL Foundation framing the upgrade as an extension of existing liquidity mechanics rather than a structural change to the ledger. The fixCleanup3_1_3 amendment, meanwhile, requires node operators to complete the 3.1.3 upgrade to remain synchronized with the main ledger, with the May 27 activation deadline having passed with a significant share of the network still on older software, according to Vet.
