Ripple (CRYPTO:XRP) has revealed plans for an XRP lending protocol on the XRP Ledger, aiming to bolster the platform's decentralised finance (DeFi) capabilities.
The proposed protocol, 0066 XLS—66d, is designed to establish a censorship-resistant DeFi ecosystem within the XRPL, promoting financial inclusivity and transparency.
This initiative introduces a direct lending and borrowing mechanism, enabling participants to contribute tokens like XRP, wBTC, and wETH to earn interest.
Off-chain negotiation of loan terms, securely recorded on-chain, streamlines the lending process, ensuring transparency and security.
While blockchain developers stand to benefit from the protocol's modular design and practical applications within the XRPL ecosystem, concerns about regulatory compliance may hinder widespread adoption.