Altcoins News
By Evie Vavasseur
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How the Lending Mechanics Actually Work. Here's the basic structure. Depositors put in XRP or RLUSD.
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XRP Doesn't Stake — So This Is Something Else. Worth being clear on this. XRP isn't a proof-of-stake blockchain.
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Security Setup and What Users Should Know. On the security side, LendProtocol uses cold storage for assets, AES-256 GCM data encryption, and…
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XRP holders now have a new place to park their assets. LendProtocol just launched a fixed-rate lending platform built on the XRP Ledger, targeting both XRP and RLUSD depositors…
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The numbers are already pretty substantial. LendProtocol says it's facilitated over 743 million XRP in loans so far, with more than 13,713 active lenders currently on the platform.
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Here's the basic structure. Depositors put in XRP or RLUSD. Borrowers take out loans but must post collateral worth at least 120% of whatever they're borrowing.
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Interest accrues daily. If you let it compound, the effective yield on a 12% APR works out to 12.75% annually.
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The 120% collateral requirement is designed to give lenders a cushion. If a borrower's collateral value drops sharply — say, Bitcoin sells off hard — the platform needs to…
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Worth being clear on this. XRP isn't a proof-of-stake blockchain. The XRP Ledger runs on Federated Byzantine Agreement, a consensus model that doesn't involve validators locking…
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LendProtocol fits squarely in that category. It's a centralized financial intermediary. Users deposit assets, the platform manages the lending process, and LendProtocol itself…
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Related: XRP Holders Gain Self-Custodial Options Access via FXRP Collateral on Derive
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And it's different from XLS-66, too. XLS-66 is a proposed lending specification for the XRP Ledger that involves off-chain credit assessments and aims to build lending at the…
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The platform says it encourages users to review its terms, audits, and risk disclosures independently before depositing anything.
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RLUSD as a deposit option adds another angle. Dollar-denominated depositors avoid XRP price exposure, which some users clearly want.
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Read also: FTX Creditor Daizhuo Chen Fights Missed Deadline as $1.8B Reserve Hangs Over Final Hearing
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