TLDR
- AMM v2 adds StableSwap and concentrated liquidity to support deeper XRPL DEX markets for traders.
- The standard keeps constant product pools while adding choices for stablecoins, FX, and RWAs markets.
- CurveType rules create separate pools, so token pairs can use different market designs together safely.
- Feature gates place protocol curves behind featureAMMCurves, while Smart AMM needs a separate amendment later.
- Smart AMM plans include WASM hooks, dynamic fees, and custom pools for future builders too.
A new XRP Ledger Standard for AMM v2 has been published for XRPL DEX markets. The proposal adds StableSwap and concentrated liquidity pool curves. It also keeps the current constant product model for volatile trading pairs.
AMM v2 adds more pool choices
The current XLS-30 AMM uses one main curve, known as constant product. That model spreads liquidity across all prices. As a result, less liquidity may sit near the active market price.
The new XRP Ledger AMM v2 standard adds StableSwap for closely linked assets. It also adds concentrated liquidity for tighter price ranges. These designs aim to help stablecoins, FX markets, RWAs, and other token pairs
The draft says all compiled curve types from 0 to 2 sit behind “featureAMMCurves.” CurveType 3 is reserved for weighted pools in the future. CurveType 4 is marked as “Smart AMM” and remains planned.
StableSwap and concentrated liquidity target market depth
StableSwap is designed for assets that should trade near similar values. That can include stablecoins and some fiat-linked markets. The model can reduce price movement during normal trades.
Concentrated liquidity lets liquidity providers choose a price range. Their funds can work inside that chosen band. This can raise usable depth without requiring more total deposits.
The proposal also uses ordered tick keys for concentrated liquidity. It does not use bitmap tracking for ticks. The draft says this avoids two sources of truth and lowers desync risk.
Pool rules and Smart AMM path
The standard sets one pool for each asset pair and curve type. A second pool with the same triple returns “tecDUPLICATE.” Different curve types can still exist for the same two assets.
CurveType cannot change after a pool starts. A pool must be withdrawn before users create another curve type. This rule gives each pool a fixed design during its life.
The planned Smart AMM would use WASM binaries and separate pool keys. The draft says this would need “featureSmartAMM.” It would also allow hooks, dynamic fees, and custom pool math in a later specification.
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