I think Spark is a better choice than Liquid for this, and I think Arkade is a better choice than Spark. I also recommend looking into Aggeus Market: https://github.com/supertestnet/aggeus_market
It's technically not an AMM (there's a service provider who plays a matchmaking role) but I think a market based on that protocol (which theoretically works on bitcoin L1 or L2) can have a UX that is competitive with AMM markets. Especially when you recall that most AMM markets have at least one non-custodial service provider too, to help smooth out the UX for users, e.g. so they don't have to install a daemon.
