Ripple Reveals XRP Ledger Lending Protocol Proposal

Published by

Elena R

April 13, 2024

Here’s something exciting for all XRP fans!

Ripple X Dev has unveiled the much-anticipated proposal for a Native Lending Protocol on the XRP Ledger, inviting public feedback. Joel Katz, Ripple’s Chief Technology Officer, shares the enthusiasm, recognizing its potential to transform the XRPL.

Expanding DeFi Capabilities

Developed by Aanchal Malhotre and Vito Tumas, the proposal aims to boost the platform’s De-Fi capabilities while fostering financial inclusivity and transparency within the Ripple ecosystem.

The proposed XRP Ledger Native Lending Protocol introduces a game-changing concept: allowing users to borrow and lend digital assets directly on the XRP Ledger, eliminating unnecessary intermediaries and promoting financial independence.

At its core, the protocol features a flexible modular design to cater to various needs within the ecosystem.

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Key Specifications

The developers introduced three pivotal specifications:

XLS-64d – Pseudo-Account: Simplifying balance tracking and token issuance by associating a single pseudo-account with multiple ledger entries.
XLS-65d – Single Asset Tokenized Pool: Enhancing liquidity management through a new ledger entry for a single tokenized asset pool.
XLS-66d – Native XRP Ledger Lending Protocol: Facilitating liquidity provider asset management by incorporating off-chain underwriting, on-chain agreements, and loan management.

Special Features

In addition to core specifications, the Native Lending Protocol offers features like:

Liquidity Providers earning interest by depositing fungible tokens into a Lending Pool.
Pool Delegates managing Lending Pools to attract capital and provide loans.
Borrowers and Pool Delegates negotiating loan terms off-chain, with transparent on-chain recording.
Facilitation of fixed-term loans with pre-set interest terms, bypassing collateral requirements through innovative risk management.

The protocol empowers developers and users alike, offering a conducive environment for building and integrating lending decentralized applications (dApps) on the XRPL, fostering innovation and adoption.

The CTO Approves!

Responding to the proposal, Ripple’s Chief Technology Officer, Joel Katz, expressed enthusiasm about the XRP Ledger Native Lending Protocol’s potential utility.

The proposal marks a significant stride in unlocking new financial avenues and enriching the XRPL’s utility. With support from Ripple’s Chief Technology Officer and the developer community, this initiative has the potential to revolutionize Ripple’s ecosystem, elevating the XRP token to new heights.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.