XRPL Smart Contracts & Hooks
Hooks add programmability to the XRP Ledger's codebase — but they are live on Xahau, not on XRPL mainnet. Here's what that means for traders.
Does XRPL Have Smart Contracts?
The XRP Ledger does not have traditional smart contracts like Ethereum's Solidity-based EVM. Instead, it takes a different approach: core features (DEX, AMM, escrow, NFTs) are built directly into the protocol. The best-known programmability proposal is Hooks — but as of today Hooks is not enabled on XRPL mainnet. None of the ledger's amendments are Hooks amendments; the feature runs on Xahau, a separate XRPL-derived network with its own validators and its own XAH token.
This is by design: there is no exchange contract to audit, because the exchange is part of the ledger, and its rules change only through amendments the validators vote on.
What Are Hooks?
Hooks are small, efficient programs written in C or WebAssembly that attach to accounts. They execute automatically when transactions touch that account - before (to block/modify) or after (to react). Think of them as transaction-level logic that can:
- Block transactions that don't meet certain conditions
- Emit new transactions in response to incoming ones
- Store state on the ledger for complex logic
- Implement custom rules like automated trading, conditional payments, or fee distribution
Hooks vs Ethereum Smart Contracts
What Hooks enable on Xahau
- Automated trading rules - stop-loss and take-profit logic executed on-chain
- Custom order types - trailing stops, time-weighted orders, and complex conditions
- Revenue sharing - automatic fee splits for token projects and DAOs
- Escrow enhancements - conditional releases based on on-chain data
- Cross-chain messaging - bridge protocols and oracle integrations
XRPL EVM Sidechain
In addition to Hooks, the XRPL has an EVM-compatible sidechain that runs full Solidity smart contracts. This gives developers the option to deploy existing Ethereum dApps on XRPL while benefiting from lower fees and bridging to the XRPL mainnet.
What This Means for XRPL Traders
If Hooks is ever proposed and voted onto XRPL mainnet, and as EVM sidechain support matures, expect more DeFi protocols, automated trading tools, and complex financial products. For now, the native DEX, AMM pools, and escrow cover most trading needs. You can already swap tokens and provide liquidity in AMM pools without any smart contracts.
Start Trading
Trade on the XRPL DEX today - no smart contracts needed.