XRPL Devs Tease Game-Changing Proposal

April 13, 2024 10:03 pm Comments

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.”

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.”

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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