to leave a comment.
▲ Ripple (XRP) ©Go Da-sol
Market attention is focusing as the possibility of a structure emerging where XRP holders can aim for 'institutional lending profits' beyond simple holding becomes more realistic.
According to cryptocurrency specialized media Bitcoinist on April 19 (local time), the XLS-66 amendment being promoted on the XRP (XRP, Ripple) network focuses on introducing an institutional lending protocol and proposes a structure where holders can indirectly earn profits.
This amendment differs from the typical 'deposit and receive interest' method. When investors deposit assets into a single asset vault, they receive MPT tokens representing their share, and profits are reflected as the redemption value of these tokens increases over time. In other words, it's a structure where profit is realized at the time of redemption, not through automatic dividends or interest payments.
Loan demanders are set as institutions such as banks, market makers, fintech companies, and payment service providers, not individual investors. They utilize this pool to secure short-term operating funds, and investors participate in the same on-chain liquidity pool as institutions, not as unspecified individuals.
The loan structure is such that a LoanBroker aggregates XRP collected in the vault and supplies it as fixed-term loans ranging from 30 to 180 days. Loans are conducted without on-chain collateral, and credit assessment and risk management are handled off-chain through traditional financial methods. When borrowers repay the principal and interest, the interest accumulates in the vault, increasing the total XRP volume of the pool, and consequently, the redemption value of MPT also rises.
XRPL validators are preparing to vote on the amendment, and some validators have already expressed their support. In particular, the structure that separates complex elements such as credit assessment and interest rate calculation to off-chain rather than on-chain is evaluated as being able to lower manipulation possibilities and security risks compared to existing DeFi models. Currently, XRP has fallen by about 3% over 24 hours from approximately $1.43.
*Disclaimer: This article is for investment reference purposes, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.