Key facts
- XRP Ledger version 3.4.0 introduces closed-ended vaults and cash-basis accounting to its lending framework.
- The new lending model is based on the XLS-66 specification, allowing fixed-term loans with Single Asset Vaults.
- The lending framework uses off-chain underwriting and risk assessment, not requiring on-chain collateral for each loan.
- The fixCleanup amendment groups several fixes into one proposal, following previous cleanup efforts.
- Version 3.4.0 modifies node behavior for missing ledger history, pausing online deletion when gaps are detected.
- Software packages have moved to packages.xrplf.org with a new XRP Ledger Foundation signing key.
The XRP Ledger (XRPL) has released version 3.4.0, which includes several amendments aimed at enhancing its functionality. A key update is the introduction of Lending Protocol v1.1, which brings changes to the network's lending framework. This includes the implementation of closed-ended vaults and cash-basis accounting. The XRPL's lending loans, based on the XLS-66 specification, are designed to offer fixed-term loans using Single Asset Vaults. Notably, this model relies on off-chain underwriting and risk assessment rather than requiring on-chain collateral for every loan.
However, the activation of these new lending functions is contingent on validator support. Installing version 3.4.0 does not automatically enable them; validators must vote to support the amendment for it to take effect on the network. Developers are also employing formal verification, using mathematical proofs alongside traditional software testing, to ensure the protocol's behavior.
Version 3.4.0 also incorporates the fixCleanup amendment, consolidating various fixes into a single proposal, building on prior cleanup efforts for Single Asset Vaults, lending, and automated market makers. Additionally, the release modifies how network nodes handle missing ledger history, pausing online deletion to maintain proximity to the latest validated ledger. Changes have also been made to the peer protocol and Multi-Purpose Token freeze checks to refine network communication and the speed of specific software checks.
In terms of infrastructure, XRPL software packages have been relocated to packages.xrplf.org and now feature an XRP Ledger Foundation signing key. Node operators using version 3.3.0 or earlier will need to update their repository configuration before installing the new release. Some operators may need to run additional commands, with specific instructions for Ubuntu installations available in the XRPL documentation.
The adoption of these amendments depends on the outcome of the XRPL's amendment voting process, which requires a specific level of validator support to be maintained through an activation period.