Ripple launches a new lending protocol, let's see what it is and above all if it will give a positive boost to the cryptocurrency!

The developers at RippleX have ambitious plans to significantly enhance the utility of the XRP Ledger (XRPL). Their proposal revolves around introducing a native lending protocol for XRPL, providing XRP holders with the opportunity to generate additional income by leveraging XRPL.

XRP Ledger is the decentralized public blockchain created for enterprises by Ripple, powered by the XRP token. It encompasses various key decentralized finance (DeFi) functionalities, starting from the decentralized exchange and native wallet, soon to be complemented by the crypto lending module, including peer-to-peer lending without third-party mediation.

Native Protocol for XRPL Lending

Introduced by RippleX developers on April 11th, the proposal involves implementing a native lending protocol for XRPL. This would enable access to crypto lending and peer-to-peer lending without intermediaries, presenting a significant opportunity for DeFi enthusiasts through XRPL.

The proposal, presented by RippleX developers Aanchal Malhotra and Vito Tumas, primarily focuses on flexibility and reusability. Essentially, it would allow users to tokenize their assets and earn interest by depositing tokens into a lending pool.

Key Components of the Ripple XRPL Lending Protocol

The native XRPL lending protocol comprises several specific instructions, defined as XLS-64d, XLS-65d, and XLS-66d.

XLS-64d allows associating a single pseudo-account with multiple ledger entries, making it easier to track balances and token issuances.

XLS-65d introduces the command to associate a single entry with the entire pool register. This feature enables representing the entire pool of tokenized assets, minimizing the effort required for different ledger entries to interact with each other.

Lastly, XLS-66d introduces the actual lending protocol. It utilizes the instruction contained in XLS-65d to manage liquidity provider activities and enable both simple lending and peer-to-peer lending.

The news of the imminent launch of the native XRPL lending protocol has generated significant excitement among XRP holders. On April 11th, over 820,000 XRP tokens were locked to fuel the liquidity of the dedicated pool. This figure has since grown to over 1.8 million XRP tokens locked in the liquidity pool, demonstrating the community's enthusiasm and optimism regarding the potential of the new lending protocol.

The New Plan Receives Approval from David Schwartz

David Schwartz, Ripple's CTO and one of the computer engineers behind the creation of XRPL, has given his blessing to the new crypto lending protocol. Schwartz expressed his excitement about the initiative, stating that if approved, it would add new utility to XRPL.

According to the CTO, the protocol's evolution could help the native DEX become a fundamental pillar for facilitating more accessible, efficient, and transparent financial services. Schwartz's support underscores the significance that the crypto lending protocol could assume in enhancing the XRP Ledger ecosystem.

This news has also positively influenced crypto analysts, who express optimism about the future of the token powering the entire XRPL ecosystem. Despite being among the few tokens in the top 10 that have not yet experienced a significant price rally, many experts believe that the next bull market could propel XRP to $20.

Matthew Dixon, CEO of Evai, cited the increasing XRP trading volume, up 42% to over $2.1 billion, to demonstrate growing interest in the altcoin.