Ripple-backed XRP Ledger validators move to vote on two new amendments, XLS-65 and XLS-66, making headlines for XRP. If approved, these proposals would add an original lending model and an asset vault model.
About the latest upgrade to the XRP Ledger lending protocol
The proposed “XLS-66 Lending Protocol” aims to facilitate “off-chain, fixed-term unsecured loans using funds pooled from a single asset vault.” The overview of the modification indicates that the model relies on off-chain underwriting and risk management to determine the creditworthiness of borrowers with the potential to originate peer-to-peer loans on-chain. Currently, the proposal is listed as “open for vote” with the default vote being “no.”
Meanwhile, “XLS-65 SingleAssetVault” is looking to create a framework for unifying the funds of more than one depositor, according to XRP news today. This feature will be effective in cooperation with the lending protocol.
For further context, this will allow the pooled liquidity to be efficiently distributed to lending operations. As with the XLS-66, this amendment is also “open to a vote.” The upgrades come at a critical juncture XRP ledger transactions It reached a two-year high recently.
VS1 Finance is responsible for these upgrades. On the tenth, team L books“VS1 is based on XRPL. Learn how we implement the Single Asset Vault and Lending Protocol to enable bond tokenization, beyond simple credit use cases.”
XRP News: Validators Test New Lending Protocol
Early testing feedback has been received by ecosystem participants and developers. At “Squid’s UNL auditor will vote yes on both proposals,” he added.
However, the figure made clear that Tests It was not a formal audit, but rather a series of simulated scenarios. “The tests are a series of scenarios where people deposit into vaults, originate loans, withdraw funds, and repay loans in different orders, timings, and sizes,” he wrote.
Additionally, he stressed that the goal is to ensure that “the mathematics is correct and cannot be manipulated” because “DeFi protocols often fail at the edges.” in XRP News Update,The auditor also highlighted one of the basic design solutions for the modifications.
“The strong feature of the protocol is that it leaves the really hard stuff (like credit assessment) off the chain,” he said. Vij described it as a modern way to design a DeFi protocol.
The “vet” XRPL validator supports format comments. He called it “a great topic on amending the XRP lending protocol that is currently up for a vote.” He highlighted how the modification relies on off-chain elements to implement the complex business logic that smart contracts are typically responsible for.
However, implementation of these proposals depends on unanimous voting. Both XLS-65 and XLS-66 require majority votes to be passed and implemented on the network.
