RippleX developers have unveiled a groundbreaking proposal that could revolutionize the XRP Ledger (XRPL). The proposal introduces an XRPL-native lending protocol, opening up new opportunities for XRP holders to earn within the XRPL ecosystem.
The proposal, presented on April 11, aims to introduce a lending protocol that enables peer-to-peer borrowing and lending of crypto assets directly on the XRPL, without the need for intermediaries. This move enhances the decentralized finance (DeFi) capabilities of the XRPL, providing users with more ways to engage in the DeFi space.
The proposal, submitted by RippleX developers Aanchal Malhotra and Vito Tumas, focuses on flexibility and reusability. It allows users to tokenize assets and earn interest by depositing tokens into a lending pool.
Key Specifications of Ripple’s XRPL Lending Protocol:
The XRPL-native lending protocol includes key specifications such as XLS-64d, XLS-65d, and XLS-66d. XLS-64d enables the association of a single pseudo-account with multiple ledger entries, simplifying tracking balances and token issuance.
XLS-65d introduces a Pool ledger entry that represents a single tokenized asset pool, streamlining interactions with minimal ledger entries. Finally, XLS-66d introduces the lending protocol itself, utilizing XLS-65d to manage liquidity provider assets and facilitate peer-to-peer borrowing and lending.
The announcement of the XRPL-native lending protocol has sparked excitement among XRP holders, with over 1.8 million XRP tokens currently locked in liquidity pools. This surge in enthusiasm reflects the community’s optimism about the potential of the new lending protocol to enhance the value proposition of the XRPL ecosystem.
David Schwartz, Ripple’s CTO and one of the architects behind the XRP Ledger, has endorsed the proposed lending protocol. Schwartz believes that if passed, the protocol could bring new utility to the XRPL, complementing the native decentralized exchange (DEX) to enable more accessible, efficient, and transparent financial services.
Despite XRP’s recent lackluster performance, crypto analysts remain optimistic about its future. Some experts predict that the cryptocurrency could reach $20 in the next bull market. Matthew Dixon, CEO of Evai, highlighted XRP’s increasing trading volume, which has surged by approximately 42% to over $2.1 billion, indicating a growing interest in the altcoin.