New Opportunities for XRP Holders to Earn on the XRP Ledger
Ripple has recently introduced a native Lending Protocol for the XRP Ledger (XRPL), providing XRP holders with more avenues to earn. The proposal, called “XLS – 66d,” was jointly proposed by Aanchal Malhotra, the Head of Research at RippleX, and Ripple’s software engineer Vytautas Vito Tumas.
This announcement follows The Crypto Basic’s previous report that efforts were underway to introduce an XRPL native lending protocol. The proposed protocol aims to expand the XRPL’s DeFi capabilities and offer users more earning opportunities. It allows for peer-to-peer borrowing and lending of crypto assets without the need for intermediaries.
The protocol offers fixed-term loans with pooled funds and pre-set interest rates, eliminating the need for collateral. It relies on off-chain underwriting and risk management. Liquidity providers can deposit XRP or other tokens into a lending pool to earn interest, while borrowers can negotiate loan terms with a pool delegate who manages the lending pool. The protocol also supports multiple-lender-single-borrower lending pools for fixed-term loans.
The XRPL Lending Protocol has been designed with flexibility and reusability in mind. The developers have ensured flexibility by making the protocol upgradeable, while reusability is achieved through the introduction of usable objects for future protocols. The proposed lending protocol consists of three specifications: XLS-64d, XLS-65d, and XLS-66d.
David Schwartz, Ripple’s CTO, has expressed his excitement for the proposed XRP Ledger Native Lending Protocol. He believes that it will bring new utility to the XRPL and elevate the ecosystem.
This proposal comes shortly after the implementation of an automated market maker (AMM) functionality on the XRPL, allowing XRP holders to provide liquidity and earn passively. In just two days, over 820K XRP tokens were committed to liquidity pools. The latest data shows that over 1.8 million XRP are now locked in liquidity pools.
It is important to note that this content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses.