Ripple is at the forefront of DeFi advancements with the introduction of a revolutionary lending protocol on the XRP Ledger, with the goal of improving financial inclusivity and transparency.
The protocol, named proposal 0066 XLS—66d, is currently open for public review on GitHub, marking Ripple’s expansion into the world of DeFi.
The new lending protocol on the XRP Ledger, known as “0066 XLS—66d,” is aimed at creating a censorship-resistant ecosystem that supports financial inclusivity and transparency.
In a CNF YouTube video, it was revealed that this protocol enables direct lending and borrowing, allowing users to contribute tokens like XRP, wBTC, and wETH to a lending pool and earn interest. The protocol’s flexible and reusable components facilitate off-chain negotiation and on-chain recording of loan terms, enhancing user engagement and security.
RippleX emphasizes the modular design of the protocol, which simplifies integration and makes it a valuable tool for blockchain developers looking to build lending decentralized applications (dApps) on the XRP Ledger.
David Schwartz, Ripple’s Chief Technology Officer, expressed his excitement about the protocol’s potential to add a new utility layer to the XRPL, complementing its native decentralized exchange (DEX) and improving accessibility, efficiency, and transparency of financial services.
Ripple’s move into DeFi showcases its focus on innovation in lending practices and ease of integration, potentially revolutionizing the delivery of financial services on the XRPL.
The design of the lending protocol is inherently modular, making it easy to incorporate into various platforms by developers. This design not only simplifies the development process but also enhances the XRPL’s utility by seamlessly integrating with its native DEX.
The introduction of the lending protocol is part of Ripple’s broader efforts to enrich its ecosystem, which also includes the launch of Automated Market Maker (AMM) pools and plans for a fully-backed US dollar stablecoin. These initiatives demonstrate Ripple’s ongoing commitment to transforming the financial landscape.
Ripple’s entry into DeFi has sparked speculation about whether the XRP price can rebound to $1. Currently, XRP is valued at $0.508, with a recent increase of 3.69% in the past day, despite a decrease of 13.93% in the past week. This trend reflects the market’s response to Ripple’s latest innovations and may indicate future growth.