Ripple launches XRPL lending protocol, developers can now access it on the testnet for testing.

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Mars Finance news: On June 29, Ripple launched the XRPL Lending Protocol to provide on-chain credit infrastructure for tokenized assets. The protocol’s core principle is that credit decisions remain off-chain, while only the execution process is standardized on-chain. Institutions handle underwriting and compliance reviews themselves, while the protocol is responsible for standardizing execution of liquidity pooling, loan origination, repayments, and default handling.

The protocol consists of two parts: a Single Asset Vault, which is used for on-chain pooling management of a single asset; and a Lending Protocol, which distributes liquidity from the vault as loans with clearly defined terms. The two correspond to the XLS-65 and XLS-66 proposals, and node approval is still required for verification. At the infrastructure layer, the protocol supports a subordinated capital mechanism, where the liquidity pool manager bears risk exposure that ranks ahead of other liquidity providers. At present, developers can already connect to the test network (devnet) to test this protocol.

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