XRP Ledger is set to fix its lending code before anyone can use it
- A package of XRP Ledger bug fixes is expected to take effect around 09:34 UTC on Oct. 23 after securing the minimum 29 validator votes required for approval.
- The fixes address Ripple’s proposed uncollateralized lending system, which remains inactive because its lending and vault amendments have only 19 and 21 votes, respectively.
- The package also closes a loophole that could allow certain accounts to create tokens despite having permission only to destroy them, while revising vault rounding and loan-default rules.
A batch of bug fixes is set to go live on the XRP Ledger on Friday, and some of them patch the lending system Ripple has pitched to banks and payment companies since June — a system that hasn’t been switched on yet and is still 10 votes short of approval.
Validators are the independent servers that agree on which transactions count. A change to the network’s rules needs backing from more than 80% of the 35 validators the network trusts by default, which works out to 29, and that backing has to hold for two straight weeks.
Under the plan, a lender deposits XRP or another token into a vault, and a loan broker lends that money out for a fixed term. The ledger records the loan and tracks repayments, and the broker decides offchain whether a borrowe
Borrowers don’t post collateral, so the broker’s judgment is all that stands between lenders and a default. Ripple has pitched the setup to payment companies that need cash while a cross-border settlement clears.