The XRP Ledger Foundation released xrpld 3.4.0 on Sept. 16, adding two new amendments alongside protocol fixes and performance improvements. The headline change, LendingProtocolV1_1, expands the network's Single Asset Vaults with closed-ended structures and cash-basis accounting, but the feature still needs validator support before it can activate.
XRPL 3.4.0 introduces lending protocol changes
The XRP Ledger Foundation released xrpld 3.4.0 on Sept. 16, adding two amendments for validator consideration: LendingProtocolV1_1 and fixCleanup3_4_0. The release also retires the fixAMMOverflowOffer amendment.
LendingProtocolV1_1 expands Single Asset Vaults through closed-ended vaults and cash-basis accounting. Under the proposed structure, vaults would operate through subscription, investment, and redemption phases.
During subscription, users can deposit assets into a vault before the investment period begins. Both deposits and withdrawals pause during the investment period, while pooled funds can be used to originate loans. Redemption then begins once that period ends, letting participants recover their shares as eligible loans mature; new loan brokers would also require closed-ended vaults after activation.
Cash-basis accounting, meanwhile, would recognize interest as income only when borrowers make payments. This differs from the previous model, which recognized scheduled interest when loans originated.
New release adds protocol and performance fixes
Beyond lending, XRPL 3.4.0 introduces a broad set of protocol corrections and network improvements. The fixCleanup3_4_0 amendment addresses issues involving vaults, automated market makers, Multi-Purpose Tokens, NFTs, escrow, and permissioned trading — for instance, changing AMMClawback behavior when MPT rounding produces a zero recovery amount and strengthening MPT balance and transfer checks that previously only generated logs.
The release also adds distinct signing hash prefixes for counterparty and sponsor signatures, preventing a signature created for one role from being replayed as another. At the node level, online deletion now pauses when recent ledger history contains gaps, so servers can stay closer to the latest ledger while managing historical data.
Validator voting still determines lending activation
Installing XRPL 3.4.0 does not activate the proposed lending changes automatically. Under the network's amendment process, an amendment needs more than 80% support from trusted validators continuously for two weeks before it becomes a network rule.
The XRP Ledger Foundation has urged server operators to upgrade to version 3.4.0 as soon as possible. Operators running older versions may need to update their repository configuration first, since Linux DEB and RPM packages are now hosted through packages.xrplf.org and signed with a Foundation key.
Source: XRP Ledger Foundation
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