XRP Ledger developers have released version 3.4.0 on September 16, introducing two significant amendment packages that revise proposed native lending functions and harden several transaction paths. According to reports from XRPL, the release introduces LendingProtocolV1_1 and fixCleanup3_4_0, while retiring fixAMMOverflowOffer after its post-amendment behavior became permanent protocol behavior. However, the software release does not mean either new amendment is active on mainnet, as XRPL's amendment process requires sustained validator consensus exceeding 80% support for two weeks before rules become active. The new LendingProtocolV1_1 introduces closed-ended vaults with defined subscription, investment and redemption periods, replacing the previous Single Asset Vaults design. Depositors can add or withdraw assets during the subscription phase, while deposits and withdrawals stop during the investment period when assets fund loans, with redemption beginning once the investment period ends.
The new LendingProtocolV1_1 introduces closed-ended vaults with defined subscription, investment and redemption periods, replacing the previous Single Asset Vaults design. As reported by XRPL, depositors can add or withdraw assets during the subscription phase, while deposits and withdrawals stop during the investment period when assets fund loans. Redemption begins once the investment period ends, allowing depositors to recover their share after loans mature. Under the new accounting model, vaults would recognize interest only when borrowers actually make payments, moving away from the previous model that recognized all scheduled interest when loans originated. The cash-basis implementation stamps new post-activation vaults with the new accounting version, with those vaults recognizing interest as borrowers pay it, and vaults created under the earlier model permanently retain legacy whole-life accounting. For XRP-denominated vaults, the investment phase can make the deposited XRP unavailable to depositors until redemption, with the mechanism creating a voluntary term commitment tied to a specific pool.
The second amendment, fixCleanup3_4_0, contains comprehensive fixes covering lending, vaults, Automated Market Makers, Multi-Purpose Tokens, NFTs, escrow, permissioned trading and account authorization. According to XRPL, the package includes changes preventing AMMClawback from burning liquidity-provider tokens when recovering zero underlying assets, and strengthens MPT invariants by enforcing ValidMPTBalanceChanges and ValidMPTTransfer checks. For Single Asset Vaults, the release implements precision and rounding changes across deposits, withdrawals and clawbacks, while permissioned trading receives corrections including excluding deleted domain offers from one Permissioned DEX invariant. The implementation permits an investment period of at least 60 seconds and strictly less than 30 years, which serves as the encoded ceiling for new vault creation.
As reported by XRPL, the underlying lending components remain short of activation, with a September 17 snapshot showing 16 of 35 trusted validators supporting SingleAssetVault and 13 of 35 supporting LendingProtocol. The current XRPLF feature code lists both LendingProtocolV1_1 and fixCleanup3_4_0 as supported while retaining DefaultNo voting behavior, meaning running the software does not cast an affirmative amendment vote without operator configuration. The new V1.1 amendment depends on the underlying lending architecture, with the current XLS-66 specification remaining classified as Draft and showing no mainnet loan executions through the proposed native protocol. A live dashboard snapshot fetched September 17 did not surface LendingProtocolV1_1 in the responding node's feature feed or show a V1.1 activation countdown.
Version 3.4.0 changes the distribution path for Linux server packages, with Debian and RPM packages now hosted through packages.xrplf.org and signed with an XRPL Foundation key. According to XRPL, server operators are urged to install 3.0.0 "as soon as possible" to maintain service continuity, with the published DEB and RPM files including SHA-256 checksums for operator verification. The protocol creates a visible commitment before money enters the loan pool, with depositors able to inspect the fixed dates and decide whether the term fits their liquidity needs. Once investment begins, the protocol enforces the advertised lock even if depositors want assets back early. For XRP holders, the design introduces a possible liquidity lock that can last from minutes to years, with the schedule creating a visible commitment before money enters the loan pool. The strongest holder takeaway is contractual, with future XRP vaults exchanging immediate liquidity for exposure to loan repayments over a fixed term, with income recorded only after payment.
