According to U.Today, Ripple's Chief Technology Officer (CTO), David Schwartz, has expressed his approval for a proposed native lending protocol on the XRP Ledger (XRPL). Schwartz, who was part of the team that developed the ledger, believes that the protocol could add new utility to XRPL. The proposal was put forward by developers Aanchal Malhotra, who also serves as the head of research at RippleX, and Vito Tumas. Schwartz is confident that the lending protocol could enhance the native decentralized exchange (DEX) by creating a critical pillar for more accessible, efficient, and transparent financial services.
The lending protocol proposal was introduced by RippleX through a series of tweets. The protocol aims to enhance XRPL's capabilities to handle Decentralized Finance (DeFi) by allowing users to lend and borrow assets directly. This would increase financial inclusion and transparency without the need for intermediaries. The protocol's primary focus would be on flexibility and reusability, and it would also enable users to tokenize assets. Users could contribute fungible tokens such as XRP, wBTC, wETH, and others to a lending pool to earn interest. The terms of the loans would be agreed upon by borrowers and pool delegates off-chain and then recorded on-chain. Developers could also benefit from the proposal as it would allow them to easily build and integrate lending decentralized applications on XRPL, offering a wide range of use cases.
In other news, Schwartz also commented on a video released by Ripple CEO Brad Garlinghouse earlier this week. The video was Ripple's response to the numerous scams and fake XRP giveaways that have been promoted on social media in recent years. Garlinghouse stated in the video that Ripple is 'fighting back' against these scams and clarified that there are no 'XRP airdrops' promoted by scammers. Ripple would never ask users to send their XRP coins, he added.