The XRP Ledger Foundation has published a new draft standard for AMM v2, introducing Constant Product, Concentrated Liquidity, and StableSwap pool curve models to enhance XRPL DEX liquidity and capital efficiency. The upgrade expands the current automated market maker framework by allowing liquidity pool creators to select curve types tailored to different asset classes.
The new models are designed to support stablecoins, foreign exchange pairs, and real-world assets that require tighter pricing and lower slippage. Concentrated Liquidity pools enable liquidity providers to deploy capital within specific price ranges, improving efficiency, while StableSwap pools optimize trading conditions for correlated assets such as RLUSD and USDC.