The XRP Ledger (XRPL) Lending Protocol amendment, designated as XLS-66, has secured 23 out of 35 trusted validator votes, according to the latest validator data. This progress brings the amendment closer to the supermajority threshold required to initiate a mandatory activation period for the network’s new native lending feature.
Validator Support and Activation Thresholds
The amendment initially recorded 21 Yes votes, representing 60% of the 35 trusted validators. At that stage, eight additional votes were required to reach the minimum threshold of 29 validators. Recent data indicates that the support level has increased to 23 votes, meaning six more Yes votes are now needed to reach the supermajority threshold.
Reaching this threshold does not immediately activate the upgrade. Instead, hitting the supermajority mark initiates a mandatory two-week activation period. During this window, the amendment requires a minimum of 80% of validators to maintain their support for the change to proceed. As of the latest reports, none of the three amendments currently under consideration have reached the supermajority threshold.
Structure of the XLS-66 Lending Protocol
XLS-66 is designed to add a native lending feature to the XRP Ledger, distinguishing it from many existing crypto lending services that typically require borrowers to provide collateral exceeding the loan amount. The proposed protocol enables fixed-term and non-collateralized lending, allowing qualified borrowers to secure loans without holding cryptocurrency collateral that exceeds the principal.
The system facilitates the pooling of funds through Single Asset Vaults, which are then loaned to borrowers under specific terms. The lending framework involves three primary actors: depositors, loan brokers, and borrowers. Depositors contribute crypto or supported assets into a vault. Loan brokers are responsible for brokering lending deals and evaluating the creditworthiness of borrowers. Borrowers receive the funds and repay them according to a set schedule.
The upgrade aims to allow financial institutions and other entities to utilize capital on the XRP Ledger rather than merely holding or transferring assets. It also creates opportunities for depositors to earn interest on assets held in lending vaults, with interest amounts dependent on actual lending activity and associated risks. A related amendment, LendingProtocolV1_1, which includes upgrades such as closed-ended vaults and updated interest accounting, currently holds 21 Yes votes.
Frequently Asked Questions
How many votes does the XRPL Lending Protocol amendment need to activate?
The amendment requires a minimum of 29 out of 35 trusted validator votes to reach the supermajority threshold. It currently has 23 votes, meaning six more are needed to trigger the mandatory two-week activation period.
What happens after the supermajority threshold is reached?
Reaching the threshold initiates a mandatory two-week activation period. During this time, a minimum of 80% of validators must continue to support the amendment for it to proceed to activation.
