Crypto
XRP Ledger Version 3.4.0 Brings Major Lending Framework Overhaul
The XRP Ledger Foundation has released version 3.4.0, bringing significant changes to its lending framework and other improvements.
The update includes a new Lending Protocol v1.1, which introduces closed-ended vaults and cash-basis accounting to the lending framework.
The XLS-66 specification-based model uses off-chain underwriting and risk assessment instead of on-chain collateral for fixed-term loans with Single Asset Vaults.
However, installing XRPL 3.4.0 does not automatically activate the new lending functions; validators must support the amendment before it can be adopted by the network.