The XRP Ledger is taking a definitive stand against flash loan attacks with a new draft amendment called AMM Swappable Curves. Filed on May 26, 2026, by developers Denis Angell and Roman Thpt, this proposal expands automated market maker capabilities while reinforcing XRPL's inherent design philosophy: transactions are atomic and self-contained, making flash loans structurally impossible.
Ethereum's composability allows flash loans to chain multiple actions within a single transaction, enabling price oracle manipulation and liquidity pool draining. XRPL eliminates this attack vector entirely.
Building on this foundation, XRPL is simultaneously developing the XLS-66 Lending Protocol and Single Asset Vaults (XLS-65), both advancing toward a full-featured decentralized finance stack. XLS-66 enables fixed-term and uncollateralized loans with off-chain credit assessments, while Single Asset Vaults simplify liquidity provision without dual-token deposits.
A $200,000 bug bounty program from October to November 2025 found no significant exploits targeting oracle manipulation or flash loan risks. The fixCleanup3_1_3 amendment, activated on May 27, 2026, addressed accounting bugs within the lending protocol.
With over $3 billion in tokenized assets, XRPL's security-first approach directly appeals to institutional investors. The uncollateralized lending component bridges traditional finance with on-chain transparency, though it shifts risk from smart contract exploits to counterparty and credit risk. XRPL trades Ethereum's composability for safety-adoption metrics will determine whether this strategy converts institutional interest into on-chain activity.