Other LZ instruction set variants that can utilize XOR:
1. ROLZ_XOR: Reduced-Offset LZ (or here) that uses XOR partial matches. Simplifies the search, but the decompressor has to keep the offsets table up to date which costs extra memory and time. Can issue just XOR's, or LIT/XOR, or LIT/COPY/XOR.
I implemented a ROLZ variant of LZHAM a few years back but the decompressor overhead wasn't acceptable to me (otherwise it worked surprisingly well).
2. LZRW_XOR: A variant of LZRW (or here) that instead of matches it issues XOR or XOR+LIT instructions instead. The compression search problem is simplified, however it's more complex vs. plain LZRW. XOR is more flexible vs. COPY (any distance can be utilized) so this should have higher gain vs. plain LZRW with a large enough hash table.