XRPL Releases xrpld v3.4.0 With New Lending Amendment

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TL;DR

• XRP Ledger server software xrpld v3.4.0 is now available.
• The release introduces LendingProtocolV1_1.
• New lending features still require amendment approval before becoming active on-chain.

The XRP Ledger has a new server release, and lending is one of the main things developers are preparing for.

Version 3.4.0 of xrpld, the reference server implementation for XRP Ledger, was released on September 17.

The update introduces two new amendments along with bug fixes and build improvements.

The headline addition is LendingProtocolV1_1.

Closed-Ended Vaults Come Into View

LendingProtocolV1_1 extends the ledger’s existing lending architecture with support for closed-ended vaults and cash-basis accounting.

Closed-ended vaults operate across defined phases covering subscription, investment and redemption.

Those phases determine when assets can enter the vault, when loans can be originated and when users can redeem their assets.

The accounting change is also worth noting.

Under cash-basis accounting, interest is recognized when payments actually arrive rather than treating scheduled interest as income immediately when a loan originates.

That may sound like an accounting detail, but for on-chain credit markets it changes how the vault represents what has genuinely been earned.

Software First, Amendment Second

There is one important distinction for XRP holders.

Shipping a new xrpld version does not automatically activate every feature included in it.

XRP Ledger uses an amendment process under which validators must signal sufficient support before protocol changes become enabled.

So v3.4.0 gives node operators the code needed for LendingProtocolV1_1, but the amendment still needs the required validator consensus before those new rules become active on the ledger.

XRPLF is already encouraging server operators to upgrade to the latest version to maintain service continuity.

That sequencing is deliberate.

It allows software to propagate across the network before a consensus-level feature becomes binding.

For users, there may be nothing visible to do today.

For node operators and developers building around native lending infrastructure, though, v3.4.0 is the version that starts putting the next iteration of that system into place.

Source: XRPL Foundation GitHub release — https://github.com/XRPLF/rippled/releases/tag/3.4.0

This article was written by the News Desk and edited by Samuel Rae.

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