Ripple (XRP) continues to improve the XRP Ledger (XRPL). Now the project wants to bring decentralized finance (DeFi) into the ecosystem.
Ripple developers have presented a proposal aimed at creating a DeFi ecosystem on the XRP Ledger. Currently it open for public review on GitHub.
New Lending Protocol on XRP Ledger
According to the initiative, the new lending protocol on XRPL will help improve the network's interaction with the DeFi ecosystem. According to the developers, this will be a significant step towards increasing financial inclusion and transparency.
The proposed protocol is a direct lending and borrowing mechanism. Developers give priority to flexibility and reusability. Key features include:
- Liquidity providers will be able to deposit fungible tokens such as XRP, Wrapped Bitcoin (wBTC) or Wrapped Ethereum (wETH) into the lending pool to earn interest;
- pool delegates manage lending pools, raising capital and making loans;
- Borrowers and pool delegates agree on loan terms off-chain and then record them on the blockchain.
The new product will significantly enrich the XRPL ecosystem due to its modular design and expandability. All this will make it easy to create and integrate decentralized applications (dApps) for online lending.
The proposal is currently under consideration and finalization. However, many are already optimistic about its potential impact on XRP. So, according to Ripple CTO David Schwartz, the initiative could create a new level of utility without scaring away traditional financial institutions.
However, Schwartz immediately admitted that some companies are unlikely to want to use such a function. Most likely, many of them will be wary of working with an unregulated loan product.
The XRPL ecosystem is actively developing
Recently, there have been several improvements in the Ripple ecosystem. Last month the developers presented automatic market maker (Automated Market Maker, or AMM).
In addition, the project previously shared plans to launch a stablecoin. The “stable” coin will be fully backed by dollar deposits and short-term US Treasuries. According to Ripple CEO Brad Garlinghouse, this will contribute to the development of the XRPL ecosystem.
According to CoinGecko, over the past 24 hours, the cost of the fintech platform’s native coin, XRP, has increased by more than 5%. At the time of writing, the asset is trading at $0.5158.
Source: Cryptocurrency

I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.