An XRP community figure anticipates a significant shift in how institutions utilize decentralized infrastructure, driven by proposed advancements to the XRP Ledger's AMM. The new "Swappable Curves" standard aims to improve upon the existing XLS-30 AMM design, which currently connects to the XRP Ledger's decentralized exchange. This proposal introduces a pluggable curve architecture, allowing pool creators to choose invariant functions like ConstantProduct, ConcentratedLiquidity, and StableSwap. The current XLS-30 model, using solely constant-product pools, is less efficient for correlated assets like stablecoins. The proposed upgrade could facilitate large stablecoin swaps with minimal price impact, a key requirement for institutional adoption. This enhancement would be similar to the innovation that made Uniswap V3 a major DeFi platform. The improved infrastructure would offer faster transaction settlement and lower costs, a key advantage of the XRP Ledger. The upgrade would provide tighter FX pair settlement and more practical Real World Asset (RWA) trading at an institutional scale. Capital providers could gain enhanced returns by strategically allocating liquidity, creating a positive feedback loop. This potential transformation positions XRPL to compete with leading DeFi platforms. The changes are expected to draw in more volume and liquidity, paving the way for larger institutional participation.

The Double-Edged Sword of DeFi: Taming Impermanent Loss Being a liquidity provider (LP) in the decentralized finance (DeFi) space feels like you've found a secret money tree. You deposit your…