Ripple Engineer Sheds Light on XRP Ledger Lending Protocol Delay: 'Safety Is the Priority'
The XRP community has been keeping a close eye on a pivotal upgrade that could fundamentally reshape onchain finance on the XRP Ledger. However, the road to implementation is proving longer than many anticipated — and now a Ripple engineer has stepped forward to explain why.
During a discussion on X, RippleX software engineer Mayukha Vadari provided new insight into the apparent slowdown surrounding the highly anticipated XRP Lending Protocol. The protocol is built on two interconnected components: the Single Asset Vault and the Lending Protocol itself, formally defined under amendments XLS-65 and XLS-66, respectively. Both amendments are still pending validator approval.
The conversation was sparked by Grape, an XRPL validator, who flagged what appeared to be stagnant progress on the two amendments. According to Grape, XLS-65 and XLS-66 still appear to be on the 'naughty list' with the dUNLs, with validator votes showing no meaningful movement for an extended period.
Vadari responded directly to these concerns, pointing to a series of pending fixes included in the upcoming 'fixCleanup3_2_0' upgrade. 'There are some fixes many of them are waiting on in fixCleanup3_2_0. Safety comes first,' the engineer stated.
To understand the significance of the delay, it helps to look at what each amendment does. XLS-65, known as the 'SingleAssetVault' amendment, establishes a framework for pooling assets from multiple depositors, designed specifically to support the on-chain Lending Protocol. XLS-66, the 'Lending Protocol' amendment, introduces fixed-term, uncollateralized loans drawn from pooled funds held in a Single Asset Vault. The system relies on off-chain underwriting and risk assessment to evaluate borrower creditworthiness while offering configurable, peer-to-peer loan structures.
As of the latest data, the Lending Protocol amendment has secured only 20% consensus among validators, far short of the 60% required for a simple majority and even further from full activation. The SingleAssetVault amendment fares slightly better at 22.86%, but still falls well below the 80% threshold needed for ratification.
The fixCleanup3_2_0 amendment, introduced alongside XRPL version 3.2.0, is a bundled package of bug fixes targeting several key areas: Single Asset Vaults, the Lending Protocol, the permissioned decentralized exchange, Multi-Purpose Tokens, and permissioned domains. Validators appear to be waiting for these fixes to be finalized before committing their votes.
This development comes on the heels of the XRP Ledger Foundation announcing a collaboration with vs1 to build an open-source reference application designed for permissioned, compliant lending on the XRP Ledger. The application is built around native XRPL primitives including Credentials, Permissioned Domains, Single Asset Vaults, and the Lending Protocol — making the successful passage of XLS-65 and XLS-66 all the more critical.
While the delay may frustrate parts of the community eager to see onchain lending go live, Vadari's comments suggest that validator hesitation is not arbitrary. The emphasis on completing safety-related fixes before proceeding reflects a deliberate, cautious approach to deploying financial infrastructure on a public blockchain — a stance that could ultimately benefit the ecosystem in the long run.
