Summary
TLDR: Ripple proposes a new lending protocol on the XRP Ledger to enhance DeFi capabilities, allowing users to lend and borrow tokens like XRP, wBTC, and wETH. The protocol aims for transparency, flexibility, and security, though some traditional finance entities may be hesitant to use it. This initiative follows Ripple’s recent introduction of AMM pools and plans for a stablecoin backed by USD deposits.
Key Points
1. Ripple is leading an initiative to bolster the XRP Ledger’s decentralized finance (DeFi) capabilities with an on-chain lending protocol.
2. The proposed lending protocol on the XRPL aims to enhance interaction with the DeFi ecosystem, offering a direct lending and borrowing mechanism that prioritizes flexibility and reusability.
3. Ripple’s CTO David Schwartz believes that the new lending protocol could introduce a new utility layer to the XRPL without deterring traditional finance entities from its use.