XRP Ledger Hackathon Puts Proposed Lending Tools in Developers’ Hands

Developers at a New York hackathon beginning Oct. 24 will build applications around proposed XRP Ledger lending features, giving the tools an early test before sustained validator support could put them into effect on the network.

XRPL Commons is hosting the event with the XRPL Foundation and Swell. The program includes work on lending applications, protocol development and artificial intelligence payments. It offers more than $40,000 in prizes, and winners may receive access to grants and incubation.

The proposed lending system relies on three amendments in the validator process. XLS-65 would let users pool one asset in a vault and receive shares representing their deposits. XLS-66 would use assets held in vaults to fund loans recorded on the ledger. LendingProtocolV1_1 would add closed-ended vaults with subscription, investment and redemption phases.

The proposals describe fixed-term loans. Brokers and borrowers, rather than the protocol, would make credit decisions. The hackathon gives developers a setting to build applications around the proposed features, but it does not activate them on the XRP Ledger.

The amendments need sustained support from trusted validators before they can take effect. No mainnet activation date has been set.

The event continues development work around the proposed lending system, which remains subject to a validator decision. Earlier coverage of the XRP Ledger’s proposed lending upgrade described the amendment and its pending mainnet activation.