XRP Ledger developers released xrpld 3.4.0 on Sept. 16, delivering two amendment packages aimed at reshaping proposed native lending features and tightening behavior across several parts of the network. The release also includes a request for server operators to upgrade their software.
The update does not by itself turn the new features on. As with other XRPL amendments, activation remains subject to validator voting, requiring more than 80% support for two consecutive weeks before any new rules take effect.
Lending changes focus on closed-ended vaults
The main lending amendment, LendingProtocolV1_1, adds a closed-ended vault model with separate subscription, investment and redemption periods. During subscription, depositors can add or remove assets. Once the vault enters the investment period, deposits and withdrawals stop while the pooled assets are used to fund loans. Redemption begins only after the investment period ends, allowing depositors to recover their share after the underlying loans mature.
The amendment also changes how interest is accounted for. Under the new cash-basis approach, interest is recognized only when a borrower actually pays it. Unpaid future interest is excluded from vault income until payment arrives, which affects reported assets, loan-debt calculations and how defaults are handled.
Developers said older vaults created under the previous approach will not be converted automatically. They also noted that new loan brokers can only be attached to closed-ended vaults once LendingProtocolV1_1 is activated, while existing positions created under earlier rules will be handled separately.
Fix package spans lending, AMMs, tokens and signing
The second amendment package, FixCleanup3_4_0, bundles a broad set of corrections touching lending and vault logic, automated market makers, Multi-Purpose Tokens, NFTs, escrow, permissioned trading and account authorization paths.
Among the listed changes, the release prevents AMMClawback from burning liquidity-provider tokens when assets are recovered. It also strengthens MPT invariants and makes ValidMPTBalanceChanges and ValidMPTTransfer checks apply even when a transaction fails.
For Single Asset Vaults, the update adjusts precision and rounding behavior so recorded assets, available assets and outstanding share supply remain aligned at precision boundaries. Signing protections were also expanded by assigning different signing-hash prefixes to counterparty and sponsor signatures, a safeguard intended to reduce replay risk.
Trading and node behavior receive additional hardening
The release includes several corrections for permissioned trading. Deleted domain offers are excluded, domain checks are tightened, and the handling of expired credentials during OfferCreate and Payment transactions is corrected.
At the node level, the software adds defensive measures including limits on TMGetLedger seeks, caps on TMTransactions lists and a deserialization fee. Together, those changes are intended to harden transaction handling and reduce problematic edge cases in network behavior.
Upgrade now, activation later
Developers said installing software that contains amendments allows servers to understand the new code paths, but it does not activate those rules on the network. Activation still depends on validator support staying above the required threshold for a continuous two-week period.
Current amendment counts indicate that lending-related proposals remain below that level, suggesting activation is not imminent. The source article also notes that Lending Protocol V1.1 depends on the underlying lending architecture known as XLS-66, which is still in draft, and that no mainnet loans or confirmed activation date have been demonstrated so far.
Source: crypto.news