Analysis of XLS-66 Amendment: How XRP Holders Can Earn Yield Through Institutional Lending Protocol
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Summary
BroadChain learned that at 04:16 on April 19, according to Bitcoinist, cryptocurrency expert James pointed out that the upcoming XLS-66 amendment, to be voted on by XRP Ledger validators, is not a simple staking-for-yield mechanism but a structured institutional lending protocol. This protocol allows XRP holders to deposit assets into single-asset vaults and receive MPT tokens representing their deposits. The redemption value of MPT increases over time, with yield realized only upon redemption. Borrowers are institutions such as banks, market makers, fintech companies, and payment providers, which obtain unsecured short-term working capital loans for 30 to 180 days through off-chain traditional underwriters for credit assessment. Expert Bo
BroadChain learned that at 04:16 on April 19, according to Bitcoinist, cryptocurrency expert James pointed out that the upcoming XLS-66 amendment, to be voted on by XRP Ledger validators, is not a simple staking-for-yield mechanism but a structured institutional lending protocol. This protocol allows XRP holders to deposit assets into a single-asset vault and receive MPT tokens representing their deposits. The redemption value of MPT increases over time, with yields realized only upon redemption. Borrowers include institutions such as banks, market makers, fintech companies, and payment providers, which undergo credit assessments through off-chain traditional underwriters to obtain unsecured short-term working capital loans for 30 to 180 days. Expert Bodhi explained that the principal and interest repaid by borrowers remain in the vault, increasing the total XRP holdings in the pool and thereby raising the redemption value of MPT. Fig, co-founder of Squid's UNL validators, stated that he will vote in favor of the amendment and believes that this design, which places complex aspects like credit assessment off-chain, aligns with the current mainstream trend in DeFi protocols, reducing the risk of manipulation and attacks. According to CoinMarketCap data, XRP is currently trading at approximately $1.46, with a 24-hour increase of over 2%.