The XRP community is discussing the potential introduction of native staking or lending functionalities on the XRP Ledger (XRPL).
Despite being over a decade old, XRPL lacks these features, forcing XRP holders to rely on
third-party platforms
for yield-earning opportunities. This conversation is now gaining traction, with key voices from the XRP ecosystem making contributions.
Introducing Native Staking on the XRP Ledger
Most recently, Mickle, an XRP community figure,
proposed
the idea of XRP staking, suggesting someone take up the challenge of making it a reality.
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He pointed to Babylon Labs, a Bitcoin staking protocol, as an example of how a staking system could work for XRP. Babylon Labs allows Bitcoin holders to earn yields on their holdings without relying on third-party trust or bridging assets to other chains.
In response to Mickle’s challenge, Hugo Philion, co-founder and CEO of Flare Networks, mentioned that development of the necessary tools to achieve staking on the XRPL is ongoing. According to Philion, Flare is building staking mechanisms using
Flare XRP (FXRP).
https://x.com/thecryptobasic
He said the protocol would leverage the Flare Data Connector (FDC) for slashing of the services from the providers or staked nodes, such as when relaying oracle data between platforms like Flare and XRPL.
XLS Proposals for XRP Staking
Vet, an XRPL dUNL validator, also submitted an idea. He
presented
the XLS-65 and XLS-66, two upcoming protocols, for bringing native yield farming to XRPL.
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According to Vet, these standards will likely undergo rigorous testing soon, with a devnet release anticipated to give developers a chance to explore their capabilities.
The
XLS-65
proposal introduces the “Single Asset Vault,” an on-chain mechanism that combines assets from multiple depositors and makes these assets available to other on-chain protocols.
This vault system will facilitate a wide range of functions, including lending, yield generation, and asset management. XLS-65 looks to provide flexibility for different use cases, including native staking, by decoupling liquidity provision from specific protocol logic.
The other piece,
XLS-66
, focuses on decentralized lending. Notably, the protocol aims to create a lending system on the XRPL, where users can offer and receive loans without the need for intermediaries like banks.
The proposal simplifies lending by skipping complex on-chain collateral and liquidation processes. Instead, it allows for uncollateralized fixed-term loans with pre-defined interest rates, relying on off-chain mechanisms for credit risk assessment.
Interestingly, the XLS-66 protocol would use the asset vaults defined in XLS-65 to pool depositor funds and facilitate lending.
Both XLS-65 and XLS-66 were authored by Vytautas Vito Tumas, a software engineer at
Ripple
, and Aanchal Malhotra, the Head of Research at RippleX, demonstrating that Ripple itself is actively involved in advancing native yield and lending functionalities on the XRPL. They submitted the proposals simultaneously in April.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.