- Two new proposals, XLS-65 and XLS-66, aim to introduce decentralized lending and yield farming directly on the XRP Ledger (XRPL).
- Flare Networks is working on staking solutions for XRP using Flare XRP (FXRP) tokens and its Data Connector to ensure accountability.
The XRP community is currently abuzz with discussions surrounding the potential addition of native staking and lending features on the XRP Ledger (XRPL). Despite the ledger being operational for more than a decade, it lacks the tools needed for XRP holders to directly earn yields through staking or lending. This limitation has pushed several users toward third-party services for such opportunities.
Proposal For Staking On XRP Ledger
Recently, prominent voices within the XRP ecosystem have revived this conversation. They are now exploring how these functionalities could be integrated directly into the XRP Ledger network. A well-known figure within the XRP community, Mickle, has been advocating for the introduction of staking on the XRPL.
Mickle’s suggestion came with a call for action as he encouraged someone to take the initiative and develop such features. He highlighted Babylon Labs, a Bitcoin staking protocol, as a model that could be easily adapted for XRPL. For context, Babylon Labs enables Bitcoin holders to earn yields without having to trust third parties or bridge their assets to other blockchains.
Responding to Mickle’s idea, Hugo Philion, the CEO and co-founder of Flare Networks, provided insight into ongoing developments. Philion revealed that Flare Networks is actively working on tools to enable staking for XRP.
He shared that Flare’s solution would use Flare XRP (FXRP) tokens. Also, the staking protocol would be integrated with Flare’s Data Connector (FDC). This mechanism is tailor-made to ensure accountability by allowing the slashing of staked services or nodes that fail in their tasks, such as when relaying Oracle data between the Flare and XRP.
Additionally, the XRP Ledger will also be hosting the Ripple RLUSD stablecoin, set to go live very soon, per the CNF report.
Other New Innovation Ideas with XRPL
In addition to these proposals, Vet, an XRPL dUNL validator, revealed new ideas for bringing native staking and lending functionality to XRPL. Vet introduced two key proposals: XLS-65 and XLS-66. Both of these protocols aim to bring yield farming and decentralized lending directly to the XRP Ledger, reported CNF.
The proposals were submitted simultaneously in April by Vytautas Vito Tumas, a Ripple software engineer, and Aanchal Malhotra, the Head of Research at RippleX. XLS-65 called the “Single Asset Vault,” is designed to enable on-chain mechanisms that combine assets from different depositors. This feature will allow these assets to be used by various on-chain protocols.
Moreover, this system would enable functions such as lending, yield farming, and asset management with the potential use case for native staking. The XLS-66 proposal centers on creating a decentralized lending protocol for XRPL users. Thus, it will enable them to lend or borrow without intermediaries like traditional banks.
This protocol simplifies lending by eliminating the need for complex on-chain collateral and liquidation processes. Instead, it offers uncollateralized fixed-term loans with predefined interest rates. Moreover, it relies on off-chain credit assessments to manage risk.
Hence, the introduction of XLS-65 and XLS-66 marks a major step toward native staking and lending mechanisms on XRPL. With these developments, the XRP Ledger could soon offer more comprehensive tools for XRP holders. Furthermore, network usage could surge as more features are added in.
Additionally, Ripple just launched a crypto custody solution on the XRP Ledger for different financial institutions, per the CNF report.
