RippleX Puts Major XRPL Lending Upgrade to Vote

The $XRP Ledger has now inched closer to launching its long-awaited native lending infrastructure. The new LendingProtocolV1_1 amendment is now open for validator voting.

RippleX announced on Sept. 30 that validators can now evaluate and vote on LendingProtocolV1_1.

The upgrade comes with two significant changes to the XRPL lending architecture: closed-ended lending vaults and cash-basis accounting.

The amendment extends two other proposed pieces of XRPL infrastructure (LendingProtocol and SingleAssetVault).

According to RippleX, LendingProtocolV1_1 must activate alongside the original LendingProtocol and SingleAssetVault amendments.

The amendment changes how that pooled capital can be used for lending.

It was included in $XRP Ledger server version 3.4.0, released on Sept. 16. The release formally introduced LendingProtocolV1_1 to 'xrpld.'

Opening validator voting is not the same as activation.

A proposed change must receive support from more than 80% of trusted validators. Furthermore, it must maintain that level of support for two weeks. If support falls back to 80% or below during that period, the two-week countdown resets.

Closed-ended vaults

LendingProtocolV1_1 has introduced the ability to create a second type of Single Asset Vault.

Single Asset Vaults pool one type of asset from multiple depositors and make that capital available to another protocol. A vault can hold $XRP, a trust line-issued token or a Multi-Purpose Token.

An open-ended vault works like an investment pool that remains continuously accessible. Users can deposit capital and receive shares based on the prevailing price per share.

Approving V1_1 alone would not suddenly create a functioning XRPL lending market.

RippleX says all three amendments (SingleAssetVault, LendingProtocol and LendingProtocolV1_1) are required for operational lending.

The Sept. 30 vote should be viewed as a procedural milestone.