XRP Ledger Transforms into a 'Money-Lending' Blockchain..."Loans on the blockchain too"

▲ XRP/AI-generated image

The XRP Ledger (XRPL) has taken a significant step towards expanding its decentralized finance ecosystem by initiating a vote to introduce a native lending protocol on its mainnet.

Crypto media outlet Coingape reported on April 17 (local time) that XRP Ledger validators are currently voting on a new lending protocol update. This update proposal is named XLS-66d. The core of the proposal is to introduce the ability to directly lend or borrow assets on the XRP Ledger. This initiative aims to increase network utility through direct, intermediary-free transactions.

The XLS-66d proposal supports fixed-term loans and unsecured lending with predefined conditions. Users can supply assets to liquidity pools to generate interest income. Borrowers will gain asset liquidity to implement various investment strategies. It adopts a ledger-native approach, differentiating itself from existing decentralized finance services. This strategy aims to simultaneously ensure network security and efficiency.

Overwhelming support from validators is essential for the protocol to be finally approved. More than 80% of all validators must continuously maintain "yes" votes for 14 days for it to be applied to the mainnet. Currently, many major validators are participating in the vote and gathering opinions. The outcome of the vote is expected to determine the direction of the XRP Ledger's technological evolution. The community anticipates this vote will be a catalyst for network activation.

The introduction of a native lending protocol will lead to strengthened liquidity across the entire Ripple ecosystem. It has the effect of establishing an institutional foundation that can attract participation from institutional investors. Developers will be able to design more complex and sophisticated financial products on the ledger. This is a strategic move to further enhance smart contract capabilities and narrow the gap with competing networks like Ethereum. The XRP Ledger dreams of evolving beyond a simple payment network into a comprehensive financial platform.

Amid careful review by validators, voting is actively underway. A thorough code audit was also conducted concurrently to prevent security incidents upon protocol introduction. Providing stable services without technical flaws is considered the top priority. The XRP Ledger plans to offer users broader financial options through this update. Ecosystem members are closely monitoring the voting progress, preparing for the dawn of a new financial era.

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