- RippleX developers have announced a proposal for a native lending protocol, XLS-66d, on the XRP Ledger.
- The protocol aims to revolutionize blockchain lending through its decentralized, protocol-native approach.
- The lending protocol will allow liquidity providers to contribute XRP or other fungible tokens into a lending pool, earning interest.
RippleX developers propose a native lending protocol, XLS-66d, on the XRP Ledger, aiming to revolutionize blockchain lending with a decentralized, protocol-native approach.
RippleX Unveils Game-Changing Lending Protocol Proposal
RippleX developers have announced a groundbreaking proposal for a native lending protocol, codenamed XLS-66d, on the XRP Ledger. The proposal lays the foundation for a robust, decentralized lending protocol that aims to revolutionize how lending takes place on the blockchain.
Key Features of the Proposed Lending Protocol
The proposed lending protocol, XLS-66d, establishes mechanisms for fixed-term, interest-accruing loans pooled from collective funds that do not require on-chain collateral. This strategy secures the protocol using off-chain underwriting and risk management, as well as a First-Loss Capital protection plan. The protocol will allow for easy lending, with terms agreed upon directly by the borrower and the lending pool’s delegated manager. Unlike traditional lending protocols in DeFi, which are smart contracts that run on a virtual machine, the XRPL’s Lending Protocol will be integrated directly into the ledger’s consensus layer and protocol.
Liquidity Providers and Future Developments
The lending protocol will allow liquidity providers to contribute XRP or other fungible tokens into a lending pool managed by a pool delegate, earning interest. With an eye toward future development, the protocol will be designed to be both upgradeable and adaptable, allowing for a wide range of prospective enhancements while maintaining backward compatibility. The lending portion of the specification is intended to be implemented on top of another specification, resulting in a single asset vault on XRP Ledger. This is intended to open up other use cases beyond loans in the future, like yield farming, escrow, and more.
Conclusion
The proposed XLS-66d lending protocol by RippleX represents a significant step forward in blockchain lending. By integrating directly into the XRP Ledger’s consensus layer and protocol, it aims to provide a more secure, flexible, and efficient lending process. The protocol’s design also allows for future enhancements and use cases, promising a dynamic evolution in the blockchain lending landscape.
