XRPL Devs Tease Game-Changing Proposal
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April 13, 2024 10:03 pm
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Two XRPL devs are teasing a new, potential upgrade to the digital ledger system.
Aanchal Malhotra and Vito Tumas have proposed a lending/borrowing protocol built directly into the XRPL known as update XLS-66d.
This native lending protocol has the potential to completely revolutionize the XRPL and lending in general.
RippleX announced the news via a lengthy social media thread posted to X social on Friday:
“The proposed Lending Protocol would empower users to borrow and lend digital assets directly, fostering financial inclusion, transparency, and efficiency, without unnecessary intermediaries.”
2/ The proposed Lending Protocol would empower users to borrow and lend digital assets directly, fostering financial inclusion, transparency, and efficiency, without unnecessary intermediaries. https://t.co/kXQEn1vAEf
— RippleX (@RippleXDev) April 12, 2024
4/ Key features:
✅ Liquidity Providers deposit fungible tokens (XRP, wBTC, wETH, etc) into a Lending Pool to earn interest
✅ Pool Delegates manage Lending Pools, attracting capital & providing loans
✅ Borrowers and Pool Delegates agree on loan terms off-chain, then record them…— RippleX (@RippleXDev) April 12, 2024
U Today explained:
The novel design is 100% decentralized: Borrowers and pool delegates will agree on loan terms off-chain, then record them on-chain.
A “loan” will be a completely new ledger object. It will be responsible for loan financing and withdrawing, payments and interest rates specifications.
RippleX outlined the key features in the upgrade proposal: “Liquidity Providers deposit fungible tokens (XRP, wBTC, wETH, etc) into a Lending Pool to earn interest.
Pool Delegates manage Lending Pools, attracting capital & providing loans. Borrowers and Pool Delegates agree on loan terms off-chain, then record them on-chain.”
6/ Loans are managed through a new 'Loan' ledger object. It handles:
– Loan financing & withdrawals
– Payment amounts & schedules
– Interest & principal payments
– Loan defaults & recovery— RippleX (@RippleXDev) April 12, 2024
8/ For developers, the protocol's modular design and extensibility make it easy to build and integrate lending dApps on the #XRPL, unlocking a wide range of use cases.
— RippleX (@RippleXDev) April 12, 2024
9/ Comments and feedback welcome – this is just the beginning!
To learn more, check out the full proposal: https://t.co/kXQEn1vAEf
— RippleX (@RippleXDev) April 12, 2024
Coin Edition added:
Additionally, the protocol facilitates fixed-term loans with pre-set interest terms, eliminating the need for collateral through risk management strategies.
Furthermore, Pool Delegates provide first-loss capital to shield Liquidity Providers against defaults.
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