David Schwartz, the CTO at Ripple, has published a comment on the recent proposal of a native lending protocol to be launched on XRPL. His comment is all the more interesting since Schwartz was one of those software engineers who built this ledger.
Ripple CTO excited about lending protocol prospect
Schwartz tweeted to approve the above-mentioned proposal made by developers Aanchal Malhotra (also the head of research at RippleX) and Vito Tumas, submitting it for review and feedback. The Ripple CTO said that if this proposal is passed, it will add new utility to XRP Ledger.
The proposed lending protocol could help the native decentralized exchange (DEX) to create “a critical pillar in enabling more accessible, efficient, and transparent financial services,” Schwartz is certain.
New XRPL lending proposal
RippleX published a series of tweets to introduce a proposal for a native lending protocol on XRP Ledger, which is intended to improve its capabilities to deal with DeFi.
The new protocol would allow users to lend and borrow assets directly, expanding financial inclusion, boosting transparency without the help of any intermediaries. The protocol’s main focus would be flexibility and reusability. It would also allow users to tokenize assets.
Users would put fungible tokens (XRP, wBTC, wETH and others) to a lending pool in order to earn interest on that. Loan terms would be agreed on by borrowers and pool delegates off-chain and then would be recorded on-chain too.
Developers would also benefit from this proposal as it would enable them to easily build and integrate lending decentralized applications on XRPL and offer a broad range of use cases.
Ripple CTO comments on Ripple's anti-scam video
Earlier this week, Schwartz commented on the video published by the Ripple chief Brad Garlinghouse. This was Ripple’s response to the multiple scams and fake XRP giveaways promoted on social media over the past years.
Schwartz shared a vague joking take on that video, commenting on the “hair” joke made by Garlinghouse in the video. Aside from that, the CEO stated there are no “XRP airdrops” promoted by scammers and Ripple would never ask users to send it their XRP coins. Besides, Garlinghouse stated that Ripple is “fighting back.”