XRP Ledger 3.4.0 Update Targets Lending and Protocol Stability

The release introduces LendingProtocolV1_1, which shifts the lending architecture toward closed-ended vaults with defined subscription, investment, and redemption periods. This update also transitions the accounting model to a cash-basis system, where interest is recognized only upon payment, rather than at loan origination. These changes are designed to address precision and management issues inherent in the previous model, though they apply only to new vaults created after potential activation.

Alongside the lending updates, the fixCleanup3_4_0 amendment addresses a broad range of technical vulnerabilities across the protocol, including Automated Market Makers (AMMs), Multi-Purpose Tokens (MPTs), and escrow operations. Specifically, the update enforces stricter MPT invariants and introduces safeguards against signature replay attacks by assigning unique hash prefixes to counterparty and sponsor roles. Furthermore, the release includes node-level hardening, such as capping incoming transaction lists and implementing fees for non-deserializable data.

Activation of these amendments is not immediate. The network requires sustained support from over 80% of trusted validators for two continuous weeks before the new rules take effect. Currently, both amendments remain below these activation thresholds. In a shift for infrastructure management, the XRPL Foundation has moved to distribute signed Linux packages directly, and developers have requested that operators verify these releases using provided SHA-256 checksums to ensure system integrity.