XRP Ledger Lending Upgrade Faces Delays as Bug Fixes Target Key Security Issues
The XRP Ledger (XRPL) is preparing to deploy a software update that fixes issues in its lending code before the network’s proposed lending system becomes operational. The patch, known as fixCleanup3_4_0, had secured the required 29 validator votes as of Monday, but the lending feature itself remains short of the approval threshold needed to activate it.
The bug-fix package was nine days into its required two-week approval period and was on track to go live at approximately 09:34 UTC on October 23. However, it has no margin for losing support: if even one validator withdraws its vote, the countdown would restart.
XRP Ledger Lending Feature Still Awaits Approval
The XRPL lending system has received 19 validator votes, while a separate proposed change for vaults that would hold lenders’ funds has received 21. Neither amendment has begun its two-week countdown. As a result, even if both proposals reached the required 29 votes immediately, the lending system could not go live before early November.
XRPL validators are independent servers that agree on which transactions are valid. Under the network’s approval process, a change to its rules must receive support from more than 80% of the 35 validators trusted by default. That means at least 29 validators must support a change, with the threshold maintained for two consecutive weeks.
How the Proposed XRPL Lending System Works
The proposed framework would allow lenders to deposit XRP or other tokens into a vault. A loan broker would then lend those funds for a fixed term, while the ledger records the loan and tracks repayments.
Borrowers would not be required to provide collateral. Instead, the broker would assess borrowers offchain, leaving lenders dependent on the broker’s judgment to manage the risk of default.
Ripple has promoted the lending model to banks and payment companies since June. One potential use case involves payment businesses that need access to cash while cross-border settlements are being processed. The system, however, has not yet been activated.
Patch Also Addresses Token Issuance Loophole
Beyond changes to the lending functionality, the fixCleanup3_4_0 package addresses a separate issue involving token permissions. According to the xrpld 3.4.0 release notes, the patch closes a loophole that could allow an account authorized only to burn tokens on behalf of an issuer to create new tokens under certain conditions.
The update also changes how vaults round amounts and adjusts the lending code’s handling of overdue loans and defaults. These changes are intended to address issues in the code before the proposed lending infrastructure can be used.
The lending feature, its vault system and the bug-fix package follow separate approval timelines. While the patch was on course for an October 23 deployment as of Monday, the lending system still needed additional validator support and completion of its own two-week approval period.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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