XRP proposed lending vaults lock deposits and expose holders to risk

Proposed V1.1 rules for the XRP Ledger (XRPL) would require new loan brokers to use closed-ended native-lending vaults, forgoing withdrawals during the investment period and leaving depositors with shares exposed to borrower repayments. In a Nov. 12 snapshot, XRPLWin showed LendingProtocol and LendingProtocolV1_1 each at 22 of 35 trusted-validator votes, with SingleAssetVault at 23 of 35. The explorer displayed a 29-vote threshold, and XRPL’s amendment rules require more than 80% support maintained for two weeks. Under Ripple’s proposed V1.1 transaction rules , newly created loan brokers would have to attach to closed-ended vaults. Brokers created before that amendment activates could continue originating loans against open-ended vaults. During subscription, depositors can add assets and withdraw, while both actions are blocked and capital can fund loans during investment.

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