Flare Founder Questions Utility of XRP Ledger Lending Amendments
- Hugo Philion, founder of Flare Network, expressed doubts about the immediate benefits of the proposed lending model amendments on the XRP Ledger for XRP holders.
- The XLS-66 proposal introduces uncollateralized lending based on a liquidity pool, while XLS-65 aims to create a ‘Single Asset Vault system’ for pooled funds.
- Philion noted that demand to borrow XRP is low since it is not widely used as a payment currency, which could limit benefits for holders.
- He highlighted alternative uses for XRP, such as providing insurance to stablecoin vaults and utilizing Flare’s ‘Confidential Compute’ feature for private lending.
- Testing of both proposals has shown no issues with implementation or security, with validators confirming support for the amendments.
As the XRP Ledger community approaches a vote on the XLS-65 and XLS-66 proposals, concerns about their direct utility for XRP holders remain prominent. Philion’s insights reflect skepticism regarding the demand dynamics necessary for these lending models to benefit users effectively.
Philion emphasized that without sufficient borrowing demand, the proposed amendments may not serve XRP holders well despite potential innovations in lending frameworks like those offered by XLS-66 and XLS-65.
