Recently, the XRP Ledger (XRPL) ecosystem has garnered significant attention due to a proposal for a native lending protocol called XLS-66. This proposal aims to directly integrate lending and borrowing functionalities into the XRPL underlying protocol, marking an important step in expanding its decentralized finance (DeFi News) capabilities. The feature has been submitted with the XRPL 3.1.0 version, and if approved, users will be able to deposit idle digital assets into liquidity pools to earn stable interest returns.
According to the proposal design, lending and borrowing will operate based on fixed terms and a pooled liquidity model, where borrowers can access funds at preset interest rates, while lenders earn returns through the liquidity pool. Unlike mainstream DeFi News platforms, XLS-66 does not introduce an automated collateral liquidation mechanism, opting instead to rely on off-chain risk control processes. This means that identity verification, credit assessments, and other steps will be completed off-chain, with the XRPL itself responsible only for transaction settlement, asset ownership records, and audit trails, thereby enhancing compliance while reducing protocol complexity.
However, the proposal has not yet reached the activation threshold. The governance mechanism of XRPL requires that any protocol changes must receive stable support from at least 80% of trusted validator nodes for two consecutive weeks. Currently, despite rising community discussion, the overall support rate from validator nodes has not met the standard, and the proposal remains in the evaluation stage. Developers and community members are actively communicating to explore how to advance this critical feature while maintaining decentralized security.