The lending protocol

The Lending Protocol (XLS-66) is a proposed native way to make fixed-term, uncollateralized loans from a single-asset vault. It is not a live mainnet feature until its amendments are enabled. Underwriting happens off the ledger. A first-loss cushion can cover some defaults. It does not automatically seize collateral.

People will tell you that you can already borrow on the XRP Ledger through this protocol. If the amendments are still short of 80%, that offer is a story, not a ledger object.

Depositors would pool one asset in a single-asset vault (XLS-65) and hold shares of that vault. A loan broker would draw from the vault and create a fixed-term loan for a borrower. The ledger would track the loan, the payments, and the default. It would not score the borrower’s credit. Someone off the ledger does that underwriting. If they are wrong, the loss is real.

First-loss capital is optional cover the broker posts. On a default, some of that cover can be moved back into the vault so depositors are not the first in line for the entire loss. It does not erase the risk. It puts the broker’s own money in front.

A follow-up amendment, LendingProtocolV1_1, was written so the first live version would include repairs: closed-ended vaults, and interest counted as borrowers pay it rather than all of it counted on day one. None of that runs on mainnet until SingleAssetVault, LendingProtocol, and the follow-up each clear the amendment bar. Vote totals move. Read the amendments list the day you care, not a headline from last month.

Real example: the ledger docs describe pooled, fixed-term, uncollateralized loans and first-loss cover, and they tie the feature to those amendments. In November 2026 the lending amendments were still short of the 80% bar. Sources: Lending Protocol, Single Asset Vaults, Amendments.