XRP Ledger Version 3.4.0 Introduces New Lending Protocol and Updates
- The XRP Ledger Foundation released version 3.4.0, featuring Lending Protocol v1.1 with closed-ended vaults and cash-basis accounting.
- Lending loans are based on the XLS-66 specification, allowing fixed-term loans through Single Asset Vaults without on-chain collateral.
- Validators must support amendments for new lending functions to activate after installation of XRPL version 3.4.0.
- The release includes a fixCleanup amendment that consolidates several fixes related to Single Asset Vaults and automated market makers.
- Node behavior modifications include pausing online deletion when gaps in ledger history are detected, enhancing node performance.
Version updates aim to improve network functionality and security, with formal verification being employed for the Lending Protocol to ensure reliability under specific inputs.
The activation of these lending changes depends on validator voting outcomes, emphasizing the community-driven nature of XRPL governance as seen in the introduction of features like fixed-term loans.(Source)
