XRP Ledger Version 3.4.0 Launches With New Lending Protocol Amendments

 XRP Ledger version 3.4.0 is now available, bringing changes to its lending framework alongside new amendments, stronger peer protections and performance updates aimed at improving how network nodes operate.

XRP Ledger 3.4.0 Brings Lending Changes

The XRP Ledger Foundation released version 3.4.0 with Lending Protocol v1.1 among the amendments open for voting. The improvement introduces closed-ended vaults and cash-basis accounting to the lending framework.

XRPL features lending loans based on the XLS-66 specification, which offers fixed-term loans with the use of Single Asset Vaults. The model uses off-chain underwriting and risk assessment instead of requiring each loan to have on-chain collateral.

However, installing XRPL 3.4.0 does not automatically activate the new lending functions. Before the network can adopt the amendment, validators need to support the amendment.

Formal verification is also being used for the Lending Protocol by the developers. This method leverages mathematical proofs to verify the protocol’s behavior under specific inputs, in addition to traditional software testing.

Version 3.4.0 Adds Fixes and Node Updates

Another amendment included with the release is fixCleanup, which groups several fixes into one proposal. The update comes after previous cleanup efforts of Single Asset Vaults, lending and automated market makers and other functions of XRPL.

Version 3.4.0 also modifies the behavior of nodes regarding missing ledger history. Online deletion now pauses when the software detects a gap, helping a node remain closer to the latest validated ledger.

Meanwhile, the developers made changes to the peer protocol and the Multi-Purpose Token freeze checks. These modifications are targeted to the network communication and the pace of particular checks that XRPL software carries out.

XRPL Moves Packages to New Repository

XRPL software packages have been replaced on packages.xrplf.org and now have an XRP Ledger Foundation signing key. The update requires a node operator to update their repository configuration prior to installing the release if they are using version 3.3.0 or below.

This upgrade will require the running of one or more additional commands on some operators. The XRPL documentation provides manual instructions for Ubuntu installations affected by the repository change.

The amendments will take effect based on the outcome of validator voting. XRPL amendments must reach the required support level and maintain it through the activation period before the network adopts them.

Version 3.4.0 therefore provides the software for the proposed lending changes while leaving their activation to the XRP Ledger’s amendment voting process.

For more on XRPL, multi-purpose tokens support real-world asset issuers expanding on-chain debt and credit markets.