The XRP Ledger's Lending Protocol amendment has gained more validator support but has not yet reached the supermajority needed to start activation. Two other amendments under consideration are also still short of that mark.
The XRP Ledger's Lending Protocol amendment now has 21 Yes votes from 35 trusted validators, or 60%. According to Vet (@Vet_X0), a notable XRPL validator and community member, the amendment gained two more Yes votes. It needs eight more to reach the minimum threshold of 29 validators.
Reaching that threshold does not switch the upgrade on right away. Supermajority starts a mandatory two-week activation period, which requires a minimum of 80% of validators to support the amendment.
What XLS-66 changes
The upgrade, known as XLS-66, aims to add a native lending feature to the XRP Ledger. Most crypto lending services typically require borrowers to post more collateral than the loan amount. XLS-66, by contrast, is designed to enable fixed-term and non-collateralized lending, so qualified borrowers could secure loans without holding excess crypto collateral.
According to the official XLS-66 document, the protocol pools funds through Single Asset Vaults, which can then be loaned to borrowers under set terms. The proposed system has three actors. Depositors put crypto or supported assets into a vault, loan brokers arrange lending deals and evaluate borrowers, and borrowers receive the loans and repay them on a set schedule.
The upgrade could also let financial institutions and other entities put capital to work on the XRP Ledger rather than only hold or move assets. It may open up ways to earn interest on deposited assets too, although the interest would largely depend on actual lending activity and risks.
Newer vote counts
The latest validator data shows 23 of 35 votes for the amendment, which still needs six more to hit the threshold. Separately, the LendingProtocolV1_1 amendment, which brings closed-ended vaults and updated interest accounting among other changes, also has 21 Yes votes.
None of the three amendments under consideration has yet reached supermajority, according to U.Today. The two extra validator votes moved the Lending Protocol one step closer to activation.
Source: U.Today
Trading involves risk.
Risk Disclaimer
