RippleX devs have unveiled an ambitious proposal that could significantly expand the utility of the XRP Ledger (XRPL). The proposal introduces an XRPL-native lending protocol, offering XRP holders new avenues to earn on the XRPL.



The developers’ proposal on April 11 will introduce an XRPL-native lending protocol that enables peer-to-peer borrowing and lending of crypto assets without intermediaries. This protocol enhances the XRPL’s decentralized finance (DeFi) capabilities, providing users with more opportunities to participate in the DeFi space.



The proposal , submitted by RippleX developers Aanchal Malhotra and Vito Tumas, emphasizes flexibility and reusability. It would allow 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 comprises several key specifications, including XLS-64d, XLS-65d, and XLS-66d. XLS-64d enables the association of a single pseudo-account with multiple ledger entries, facilitating the tracking of balances and issuance of tokens.



XLS-65d introduces a new Pool ledger entry representing a single tokenized asset pool, simplifying interaction with minimal ledger entries. Finally, XLS-66d introduces the actual lending protocol, leveraging XLS-65d for managing liquidity provider assets and enabling peer-to-peer borrowing and lending.



The announcement of the XRPL-native lending protocol has generated significant enthusiasm among XRP holders. Following an amendment on April 11, over 820,000 XRP tokens were initially committed to liquidity pools .



However, the latest data reveals a substantial increase, 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 XRP Ledger ecosystem.



David Schwartz’s Endorsement



David Schwartz, Ripple’s CTO and one of the software engineers who built the XRP Ledger, has endorsed the proposed lending protocol. Schwartz shared his approval of the proposal on X, stating that it would add new utility to the XRPL if passed.




Very excited to see the XRP Ledger Native Lending Protocol proposal up for review and feedback – if passed, this could bring new utility to the XRPL. Together with the native DEX, this lending protocol forms a critical pillar in enabling more accessible, efficient, and… https://t.co/jgv4iRuPwR — David "JoelKatz" Schwartz (@JoelKatz) April 12, 2024




He believes the protocol could help the native decentralized exchange (DEX) become a critical pillar in enabling more accessible, efficient, and transparent financial services. Schwartz’s endorsement underscores the significance of the proposed lending protocol in enhancing the XRPL ecosystem.



Crypto analysts remain optimistic about XRP’s future despite its recent lackluster performance. Some experts predict the cryptocurrency could reach $20 in the next bull market. Matthew Dixon, CEO of Evai, highlighted XRP’s increasing trading volume, which surged by approximately 42% to over $2.1 billion, indicating growing interest in the altcoin.