Version 3.4.0 of xrpld, the reference server implementation for the XRP Ledger, was released on September 17. The update introduces new amendments alongside bug fixes and build improvements, with lending infrastructure as the primary focus.
New Lending Features
The headline addition is LendingProtocolV1_1, which extends the ledger's existing lending architecture with support for closed-ended vaults and cash-basis accounting.
Closed-ended vaults operate across defined phases covering subscription, investment, and redemption. These phases determine when assets can enter the vault, when loans can be originated, and when users can redeem their assets.
The accounting change introduces cash-basis accounting, under which interest is recognized when payments actually arrive rather than treating scheduled interest as income immediately when a loan originates. For on-chain credit markets, this approach changes how vaults represent genuinely earned income.
Amendment Process Required
Shipping a new xrpld version does not automatically activate every feature included in it. The XRP Ledger uses an amendment process under which validators must signal sufficient support before protocol changes become enabled.
Version 3.4.0 provides node operators with the code needed for LendingProtocolV1_1, but the amendment still requires the necessary validator consensus before those new rules become active on the ledger.
The XRP Ledger Foundation is encouraging server operators to upgrade to the latest version to maintain service continuity. This sequencing allows software to propagate across the network before a consensus-level feature becomes binding.
