A new proposal submitted to the XRP Ledger Foundation on May 26 aims to overhaul the XRPL's automated market maker by introducing multiple trading curve types, including concentrated liquidity and StableSwap, alongside a future smart AMM that would run custom swap logic via WebAssembly.
Why the XRPL AMM needs a refresh
Authors Denis Angell and Roman Thpt, in XLS Discussion #547, point to three structural gaps in the current design: capital inefficiency, curve inflexibility, and limited composability. The existing AMM, introduced with XLS-30 in 2024, uses a single constant-product curve for all pairs. That wastes capital when trading stablecoins or other tightly correlated assets, they argue. With over $2 billion in tokenized real-world assets and $1.93 billion in monthly stablecoin transfers already on the XRPL, a more flexible AMM could unlock more liquidity, the proposal suggests.
Four curve types on the table
The proposal defines four distinct curve types. The constant product curve is backward compatible with XLS-30 pools, so existing liquidity providers won't need to migrate. Concentrated liquidity, modeled on Uniswap v3, lets LPs concentrate capital within a chosen price range, boosting efficiency. The StableSwap curve, inspired by Curve Finance, is designed for stablecoin pairs where prices stay near parity. Each token pair could host multiple pools running different curve types simultaneously.
The fourth type is a Smart AMM that would use WebAssembly binaries for custom swap math, dynamic fees, and lifecycle hooks. That specification is reserved for a future release; the authors say it's "forthcoming" and will be detailed once the community agrees on the overall direction.
How routing and multiple pools work
XLS-547 introduces automatic routing across pools. When a user initiates a trade, the XRPL payment engine scans all pools for that token pair — across all curve types — and executes the swap at the best available rate. That means liquidity providers can choose the curve that fits their strategy, and traders still get optimal execution without manually picking a pool. The proposal says this addresses the composability gap by letting different AMM strategies coexist and interoperate.
Draft awaiting community review
The proposal is in draft status and has not yet been put to a formal vote. Angell and Thpt are soliciting feedback from developers, liquidity providers, and token issuers before moving toward an amendment process. The Smart AMM portion will require its own detailed specification once the community agrees on the overall architecture. No timeline has been set for adoption, but the proposal marks the first major attempt to upgrade XRPL's AMM since XLS-30 launched last year.
