On September 16, developers of the XRP Ledger introduced the new version 3.4.0, which includes changes in lending and a package of protocol fixes. The update features two main changes: LendingProtocolV1_1 and fixCleanup3_4_0. The former provides functionality for closed asset vaults and accounting based on actual receipts, while the latter strengthens the security of various transaction routes, urging server operators to implement it swiftly. The XRPL update system requires that over 80% of validators support the new changes consistently for two weeks before they become active on the mainnet.
LendingProtocolV1_1 introduces closed vaults with specific subscription, investment, and redemption periods, altering the structure of asset vaults and accounting models. Participants will be able to deposit and withdraw funds only during the subscription phase, while during the investment period, deposits and withdrawals will be suspended. The new accounting method will recognize interest income only when it is received, differing from the previous method where all scheduled interest was accounted for immediately. Cash-basis accounting leaves unpaid future interest outside of the vaults' income until payment is received, impacting total assets and loan calculations.
Version 3.4.0 also includes a package of fixed corrections that enhance the security of various components, such as automated market makers and permitted trading. However, it is important to note that none of the proposed changes are activated on the mainnet until more than 80% of validators support them for two weeks. Currently, support for the new changes remains below the required level, indicating that final activation still depends on the validators' decision.
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