XLS-0066 Lending Protocol #240

Tapanito · 2024-10-18T17:31:46Z

Discussion thread can be found here: #190
Development branch can be found here: TBD

sappenin · 2024-11-25T16:47:12Z

@Tapanito this PR seems ready to merge -- do you agree?

(Note that per the DRAFTS section of the CONTRIBUTING guidelines, merging does not mean endorsement or even a completed spec, but instead offers a way for spec editors to more easily edit using PRs).

Tapanito · 2024-12-04T14:10:41Z

Before merging, I'd like to have at least one review by an engineer to ensure everything is in order. In addition, similarly to Single Asset Vault, it is simpler/more convenient to edit a PR with various small design changes (e.g. names), rather than open a new PR for each of them. As a result, keeping a PR open allows to have a spec. that is more readily in-alignment with implementation.

sappenin · 2024-12-04T18:00:03Z

Makes sense, especially if it's more convenient. Just didn't want you (or anyone reading along) to think that merging here implies "finished product" (that's why we have a d designator, to indicate draft status).

XLS-0066d-lending-protocol/README.md

- Adds VaultNode to LoanBroker object to track in which owner directory of the Vaults pseudo-account the LoanBroker object is referenced. - Adds LoanBrokerNode to Loan object to track in which owner directory of the LoanBroker object the Loan is references. - Replaces CurrentTime to LastClosedLedger.CloseTime. - Changes the LoanBroker.Delete transaction to automatically return any outstanding Cover to the LoanBroker.Owner. - Adds a balance check to the LoanBrokerCoverDeposit transaction when depositing XRP. - Adds a check to LoanBrokerCoverWithdraw to ensure the CoverAvailable does not drop below Mimimum Cover Required.

Co-authored-by: Ed Hennis <ed@ripple.com>

… when the last Loan is delete

… for the missing flc

Tapanito · 2025-01-28T19:24:07Z

Hmmm, that would make sense, but let me make sure there are no legitimate use cases we would block.

…

On Tue, Jan 28, 2025, 19:18 Ed Hennis ***@***.***> wrote: ***@***.**** commented on this pull request. ------------------------------ In XLS-0066d-lending-protocol/README.md <#240 (comment)>: > +$$ +valueChange = (prepaymentPenalty) - (interestOutstanding - accruedInterest) +$$ + +Note that `valueChange <= 0` as an early repayment reduces the total value of the Loan. In theory, yes, it is possible to have valueChange > 0. Remember: prepaymentPenalty = principalOutstanding \times closeInterestRate valueChage > 0 suggests that the borrower would pay MORE to close the Loan early, than repay the loan in scheduled payments. Yeah, those would be pretty cruddy terms to accept on a loan. So do we make valueChange <= 0 a hard requirement to stop loan sharking? 😁 — Reply to this email directly, view it on GitHub <#240 (comment)>, or unsubscribe <https://github.com/notifications/unsubscribe-auth/ABMDKUYNBBEOX2W5APQBDZ32M7J2BAVCNFSM6AAAAABQGMS3AWVHI2DSMVQWIX3LMV43YUDVNRWFEZLROVSXG5CSMV3GSZLXHMZDKNZZGIYDQNJVGU> . You are receiving this because you were mentioned.Message ID: ***@***.***>

Tapanito · 2025-01-28T19:31:34Z

I prefer to measure a year in cups of coffee ☕

…

On Tue, Jan 28, 2025, 19:24 Ed Hennis ***@***.***> wrote: ***@***.**** commented on this pull request. ------------------------------ In XLS-0066d-lending-protocol/README.md <#240 (comment)>: > +$$ +periodicRate = \frac{interestRate \times paymentInterval}{365 \times 24 \times 60 \times 60} +$$ If we assume that, by monthly payments you mean every 30 days, then 12% interest rate then the periodic rate would be (12 * 30) / 365 (the hours and seconds cancel out) or ~= 0.986` Ok. Perfect. Thanks! I was imaging a theoretical situation where I make 12 payments equally spaced across the year (i.e. every 365/12 = ~30.417 days or every 24*365/12 = 730 hours. Since the loans are timed in seconds, those terms are possible, and actually kinda interesting.) ...And now I'm humming *Seasons of Love*... — Reply to this email directly, view it on GitHub <#240 (comment)>, or unsubscribe <https://github.com/notifications/unsubscribe-auth/ABMDKU2W6CZJOD2BQQSNFRL2M7KOLAVCNFSM6AAAAABQGMS3AWVHI2DSMVQWIX3LMV43YUDVNRWFEZLROVSXG5CSMV3GSZLXHMZDKNZZGIYTSMBRGE> . You are receiving this because you were mentioned.Message ID: ***@***.***>

ximinez

Updates look good.

XLS-0066d-lending-protocol/README.md

Co-authored-by: Ed Hennis <ed@ripple.com>

XLS-0066d-lending-protocol/README.md

Tapanito · 2025-03-19T22:08:49Z

No, since we introduced a pseudo-account for the LoanBroker, the deposit will go there

…

On Wed, 19 Mar 2025 at 23:03, Ed Hennis ***@***.***> wrote: ***@***.**** commented on this pull request. ------------------------------ In XLS-0066d-lending-protocol/README.md <#240 (comment)>: > + +##### 3.1.3.3 Invariants + +**TBD** + +[**Return to Index**](#index) + +#### 3.1.4 `LoanBrokerCoverWithdraw` + +The `LoanBrokerCoverWithdraw` transaction withdraws the First-Loss Capital from the `LoanBroker`. + +| Field Name | Required? | JSON Type | Internal Type | Default Value | Description | +| ----------------- | :----------------: | :-------: | :-----------: | :-----------: | :------------------------------------------------------------ | +| `TransactionType` | ✔️ | `string` | `UINT16` | **TODO** | Transaction type. | +| `LoanBrokerID` | ✔️ | `string` | `HASH256` | `N/A` | The Loan Broker ID from which to withdraw First-Loss Capital. | +| `Amount` | ✔️ | `object` | `NUMBER` | 0 | The amount of Vault asset to withdraw. | Perhaps it's worth keeping it as amount, and chaking the type to amount too? Just in case, in the future, we want to support depositing different cover assets? But doesn't the deposit go into the Single Asset Vault? That can't hold different types of assets. — Reply to this email directly, view it on GitHub <#240 (comment)>, or unsubscribe <https://github.com/notifications/unsubscribe-auth/ABMDKUZ7CZWQZZUZKUFZQZD2VHSULAVCNFSM6AAAAABQGMS3AWVHI2DSMVQWIX3LMV43YUDVNRWFEZLROVSXG5CSMV3GSZLXHMZDOMBQGM3TONZRGA> . You are receiving this because you were mentioned.Message ID: ***@***.***>

-- Sincerely, Vytautas Tumas

ximinez · 2025-03-20T16:30:33Z

No, since we introduced a pseudo-account for the LoanBroker, the deposit will go there

Right, I wasn't thinking about that, but if there is a loan default, and funds have to be paid out of the Cover Amount, wouldn't that go to the SAV?

Tapanito · 2025-03-20T16:58:24Z

No, since we introduced a pseudo-account for the LoanBroker, the deposit will go there

Right, I wasn't thinking about that, but if there is a loan default, and funds have to be paid out of the Cover Amount, wouldn't that go to the SAV?

Yes, 100%, the cover amount liquidation, in essence, will become a transfer of asset from one pseduo-account to another, with some accounting state changes.

ximinez · 2025-03-21T19:11:42Z

No, since we introduced a pseudo-account for the LoanBroker, the deposit will go there

Right, I wasn't thinking about that, but if there is a loan default, and funds have to be paid out of the Cover Amount, wouldn't that go to the SAV?

Yes, 100%, the cover amount liquidation, in essence, will become a transfer of asset from one pseduo-account to another, with some accounting state changes.

Right, so they should be the same currency, no? I'm fine with it being an STAmount as long as we're on the same page that the transaction should fail if it's not the same currency as the SAV.

…mputation

mvadari · 2025-10-02T14:26:30Z

XLS-0066d-lending-protocol/README.md

+The total fee for the transaction will be increased due to the extra signatures that need to be processed, similar to the additional fees for multisigning. The minimum fee will be $(|signatures| + 1) \times base_fee$ where $|signatures| == max(1, |tx.CounterPartySignature.Signers|)$
+
+The total fee calculation for signatures will now be $(1 + |tx.Signers| + |signatures|) \times base_fee$. In other words, even without a `tx.Signers` list, the minimum fee will be $2 \times base_fee$.


Suggested change

The total fee for the transaction will be increased due to the extra signatures that need to be processed, similar to the additional fees for multisigning. The minimum fee will be $(|signatures| + 1) \times base_fee$ where $|signatures| == max(1, |tx.CounterPartySignature.Signers|)$

The total fee calculation for signatures will now be $(1 + |tx.Signers| + |signatures|) \times base_fee$. In other words, even without a `tx.Signers` list, the minimum fee will be $2 \times base_fee$.

The total fee for the transaction will be increased due to the extra signatures that need to be processed, similar to the additional fees for multisigning. The minimum fee will be $(|signatures| + 1) \times base\_fee$ where $|signatures| == max(1, |tx.CounterPartySignature.Signers|)$

The total fee calculation for signatures will now be $(1 + |tx.Signers| + |signatures|) \times base\_fee$. In other words, even without a `tx.Signers` list, the minimum fee will be $2 \times base\_fee$.

I think this is correct LaTeX to get the underscore to appear right.

ximinez

Just a comment...

ximinez · 2025-10-01T17:26:53Z

XLS-0066d-lending-protocol/README.md

+$$
+latePaymentInterest = principalOutstanding \times \frac{lateInterestRate \times secondsSinceLastPayment}{365 \times 24 \times 60 \times 60}
+$$


I believe the correct calculation is:

secondsSinceLastPayment = lastLedgerCloseTime - Loan.nextPaymentDate ``

I was thinking about this yesterday, when we were looking at this. I agree.

amarantha-k · 2025-10-22T22:01:42Z

@Tapanito Just a quick note to drop the "d" from the directory name before merging. (XLS-0066d-lending-protocol/README.md -> XLS-0066-lending-protocol/README.md).

XLS-0066d-lending-protocol/README.md

gregtatcam · 2025-10-28T16:48:13Z

XLS-0066d-lending-protocol/README.md

+
+##### 2.2.2.2 TotalValueOutstanding
+
+The total outstanding value of the Loan, including all fees. To calculate the outstanding interest portion, use this formula: `TotalInterestOutstanding = TotalValueOutstanding - PrincipalOutstanding - ManagementFeeOutstanding`.


If it includes all fees then why only ManagementFeeOutstanding is subtracted?

That's a wording issue. TotalValueOutstanding contains the fees that are charged against the interest. It does not contain service fees, for example.

Let me wordsmith that better.

XLS-0066d-lending-protocol/README.md

gregtatcam · 2025-10-28T16:50:36Z

XLS-0066d-lending-protocol/README.md

+
+- **PrincipalOutstanding**: Represents the remaining principal balance that the borrower must repay to satisfy the original loan amount.
+- **TotalValueOutstanding**: Encompasses the complete remaining loan obligation, comprising both the outstanding principal and all scheduled interest payments based on the original amortization schedule. This value excludes any additional interest charges resulting from late payments.
+- **InterestOutstanding**: The total scheduled interest remaining on the loan, derived as `TotalValueOutstanding - PrincipalOutstanding`.


Why is the fee not subtracted? This is different from section 2.2.2.2.

gregtatcam · 2025-10-28T17:05:51Z

XLS-0066d-lending-protocol/README.md

+- **TotalValueOutstanding**: Encompasses the complete remaining loan obligation, comprising both the outstanding principal and all scheduled interest payments based on the original amortization schedule. This value excludes any additional interest charges resulting from late payments.
+- **InterestOutstanding**: The total scheduled interest remaining on the loan, derived as `TotalValueOutstanding - PrincipalOutstanding`.
+
+**Asset-Specific Precision Handling**: For discrete asset types (MPTs and XRP denominated in drops), both `TotalValueOutstanding` and `PrincipalOutstanding` values are truncated to whole numbers to ensure compatibility with the underlying asset precision requirements.


Are the values always truncated or rounded up or down?

After the new LoanPay changes, values are rounded to the nearest even number.

gregtatcam · 2025-10-28T17:20:21Z

XLS-0066d-lending-protocol/README.md

+| ----------------- | :----------------: | :-------: | :-----------: | :-----------: | :---------------------------------------------------------------------- |
+| `TransactionType` | :heavy_check_mark: | `string`  |   `UINT16`    |     `77`      | Transaction type.                                                       |
+| `LoanBrokerID`    | :heavy_check_mark: | `string`  |   `HASH256`   |     `N/A`     | The Loan Broker ID from which to withdraw First-Loss Capital.           |
+| `Amount`          | :heavy_check_mark: | `object`  |   `AMOUNT`    |       0       | The Fist-Loss Capital amount to withdraw.                               |


Should this be NUMBER type? We are going to access Vault anyways so will now specific Asset type. NUMBER is going to make the tx size smaller by 40 bytes(IOU/XRP) or 24 bytes (MPT). It's also fewer checks in preclaim. This also applies to LoanBrokerCoverDeposit, LoanBrokerCoverWithdraw, and LoanPay. By the way, PrincipalRequested in LoanSet is NUMBER. I think it makes sense to make all the Amount fields to have NUMBER type.

Should this be NUMBER type? We are going to access Vault anyways so will now specific Asset type. NUMBER is going to make the tx size smaller by 40 bytes(IOU/XRP) or 24 bytes (MPT). It's also fewer checks in preclaim. This also applies to LoanBrokerCoverDeposit, LoanBrokerCoverWithdraw, and LoanPay. By the way, PrincipalRequested in LoanSet is NUMBER. I think it makes sense to make all the Amount fields to have NUMBER type.

There was an earlier discussion on this topic. #240 (comment)

tl;dr Because of how SFields are defined, any field name Amount must be AMOUNT. It was decided to keep the familiar name rather than create a new field.

gregtatcam · 2025-11-15T16:41:39Z

XLS-0066d-lending-protocol/README.md

+
+### 1.2.2 Freeze
+
+Freeze is a mechanism by which an asset Issuer (IOUT or MPT, not XRP) freezes an `Account`, preventing that account from sending the Asset. Deep Freeze is a mechanism by which an asset Issuer prevents and `Account` from both sending and receiving and Asset. Finally, an Issuer may enact a global freeze, which prevents everyone from sending or receiving the Asset. Note that in both single-account and global freezes, the Asset can be sent to the Issuer.


Typo: IOUT -> IOU.

gregtatcam · 2025-11-15T16:42:40Z

XLS-0066d-lending-protocol/README.md

+
+If the Issuer freezes a Borrower's account, the Borrower cannot make loan payments. However, a frozen account does not lift the obligation to repay a Loan. If the Issuer Deep Freezes a Borrower's account, the Brrower cannot make loan payments.
+
+A Deep Freeze does not affect the Loan Broker's functions. However, a Deep Freeze will prevent the Loan Broker from receing any Lending Protocol Fees.


Typo: receing -> receiving.

gregtatcam · 2025-11-15T16:43:36Z

XLS-0066d-lending-protocol/README.md

+
+A Deep Freeze does not affect the Loan Broker's functions. However, a Deep Freeze will prevent the Loan Broker from receing any Lending Protocol Fees.
+
+The Issuer may also Freeze of Deep Freeze the `_pseudo-account_` of the Loan Broker. A Freeze on the `_pseudo-account_` will prevent the Loan Broker from creating new Loans. However existing Loans will not be affected. In contrast, a Deep Freeze, will also prevent the Loans from being paid.


Typo: Freeze of Deep Freeze -> Freeze or Deep Freeze.

gregtatcam · 2025-11-15T16:47:37Z

XLS-0066d-lending-protocol/README.md

+- **`First-Loss Capital`**: The portion of capital that absorbs initial losses in case of a Default, protecting the Vault from loss.
+- **`Term`**: The period over which a Borrower must repay the Loan.
+- **`Amortization`**: The gradual repayment of a loan through scheduled payments that cover both interest and principal over time.
+- **`Repayment Schedule`**: A detailed plan that outlines when and how much a borrower must pay to repay the Loan fLoan.


Typo: to repay the Loan fLoan -> to repay the Loan funds.

gregtatcam · 2025-11-15T17:02:44Z

XLS-0066d-lending-protocol/README.md

+The loan's financial state is tracked through three key components:
+
+- **PrincipalOutstanding**: Represents the remaining principal balance that the borrower must repay to satisfy the original loan amount.
+- **TotalValueOutstanding**: Encompasses the complete remaining loan obligation, comprising the outstanding principal, all scheduled interest payments based on the original amortization schedule and the management fee paid on the interest. This value excludes any additional interest charges resulting from late payments, overpayments of full payments.


Why is the interest based on the original amortization schedule? If there is an additional amount added to a payment then the amortization schedule has to be updated, no?

gregtatcam · 2025-11-15T19:28:23Z

XLS-0066d-lending-protocol/README.md

+managementFee_{late} = latePaymentInterest_{gross} \times managementFeeRate
+$$
+
+The change in the total loan value is equent to the late payment interest, excluding any fees.


Typo: equent -> equal.

shawnxie999 · 2025-11-17T21:13:09Z

XLS-0066d-lending-protocol/README.md

+
+- **PrincipalOutstanding**: Represents the remaining principal balance that the borrower must repay to satisfy the original loan amount.
+- **TotalValueOutstanding**: Encompasses the complete remaining loan obligation, comprising the outstanding principal, all scheduled interest payments based on the original amortization schedule and the management fee paid on the interest. This value excludes any additional interest charges resulting from late payments, overpayments of full payments.
+- **InterestOutstanding**: The total scheduled interest (including fee) remaining on the loan, derived as `TotalValueOutstanding - PrincipalOutstanding`.


in 2.2.2.2 TotalValueOutstanding, it says it's TotalInterestOutstanding = TotalValueOutstanding - PrincipalOutstanding - ManagementFeeOutstanding, what's the difference?

shawnxie999 · 2025-11-17T21:55:22Z

XLS-0066d-lending-protocol/README.md

+  - Otherwise:
+
+    - Increase the `RippleState` balance between the `LoanBroker.Owner` `AccountRoot` and the `Issuer` `AccountRoot` by `Loan.LoanOriginationFee`.


why isnt CoverAvailable increased in this case?

nvm, the fund isn't added to the broker's pseudo-account.

kuan121 · 2025-09-18T21:25:30Z

XLS-0066d-lending-protocol/README.md

+
+### 1.2.2 Freeze
+
+Freeze is a mechanism by which an asset Issuer (IOUT or MPT, not XRP) freezes an `Account`, preventing that account from sending the Asset. Deep Freeze is a mechanism by which an asset Issuer prevents and `Account` from both sending and receiving and Asset. Finally, an Issuer may enact a global freeze, which prevents everyone from sending or receiving the Asset. Note that in both single-account and global freezes, the Asset can be sent to the Issuer.


Deep Freeze is a mechanism by which an asset Issuer prevents and Account

Typo: an Account

kuan121 · 2025-11-23T17:03:12Z

XLS-0066d-lending-protocol/README.md

+| `LoanBrokerNode`           |       `No`       |   `Yes`   | :heavy_check_mark: | `number`  |   `UINT64`    |                                       `N/A`                                       | Identifies the page where this item is referenced in the `LoanBroker`s owner directory.                                                                               |
+| `LoanBrokerID`             |       `No`       |   `Yes`   | :heavy_check_mark: | `string`  |   `HASH256`   |                                       `N/A`                                       | The ID of the `LoanBroker` associated with this Loan Instance.                                                                                                        |
+| `Borrower`                 |       `No`       |   `Yes`   | :heavy_check_mark: | `string`  |  `AccountID`  |                                       `N/A`                                       | The address of the account that is the borrower.                                                                                                                      |
+| `LoanOriginationFee`       |       `No`       |   `Yes`   | :heavy_check_mark: | `number`  |   `NUMBER`    |                                       `N/A`                                       | A nominal nds amount paid to the `LoanBroker.Owner` when the Loan is created.                                                                                         |


Typo: A nominal funds amount paid to

kuan121 · 2025-11-23T18:18:06Z

XLS-0066d-lending-protocol/README.md

+2. The Loan Broker creates a `LoanBroker` ledger entry with a `LoanBrokerSet` transaction.
+3. The Depositors deposit assets into the `Vault`.
+4. Optionally, the Loan Broker deposits First-Loss Capital into the `LoanBroker` with the `LoanBrokerCoverDeposit` transaction.
+5. The Loan Broker and Borrower create a `Loan` object with a `LoanSet` transaction and the requested principal (excluding fees) is transered to the Borrower.


Typo: ... is transferred to the Borrower

kuan121 · 2025-11-23T18:18:38Z

XLS-0066d-lending-protocol/README.md

+
+### 1.2.2 Freeze
+
+Freeze is a mechanism by which an asset Issuer (IOUT or MPT, not XRP) freezes an `Account`, preventing that account from sending the Asset. Deep Freeze is a mechanism by which an asset Issuer prevents and `Account` from both sending and receiving and Asset. Finally, an Issuer may enact a global freeze, which prevents everyone from sending or receiving the Asset. Note that in both single-account and global freezes, the Asset can be sent to the Issuer.


Typo:

... (IOU or MPT, not XRP) ...

prevents an Account from both sending and receiving an Asset?

kuan121 · 2025-11-23T18:20:26Z

XLS-0066d-lending-protocol/README.md

+
+Freeze is a mechanism by which an asset Issuer (IOUT or MPT, not XRP) freezes an `Account`, preventing that account from sending the Asset. Deep Freeze is a mechanism by which an asset Issuer prevents and `Account` from both sending and receiving and Asset. Finally, an Issuer may enact a global freeze, which prevents everyone from sending or receiving the Asset. Note that in both single-account and global freezes, the Asset can be sent to the Issuer.
+
+If the Issuer freezes a Borrower's account, the Borrower cannot make loan payments. However, a frozen account does not lift the obligation to repay a Loan. If the Issuer Deep Freezes a Borrower's account, the Brrower cannot make loan payments.


Typo: ... the Borrower cannot make loan payments

kuan121 · 2025-11-23T18:23:01Z

XLS-0066d-lending-protocol/README.md

+PrincipalRequested = 1,000 Tokens
+InterestRate       = 0.1 (10%)
+
+# SIMPLIfIED


# SIMPLIFIED

kuan121 · 2025-11-23T18:23:56Z

XLS-0066d-lending-protocol/README.md

+
+  - The `MPToken` object for the `Vault(LoanBroker(Loan(LoanID).LoanBrokerID).VaultID).Asset` of the submitter `AccountRoot` has
+    - `lsfMPTLocked` flag set.
+    - `MPTAmount` < `totalDue` (inssuficient funds).


Typo: insufficient funds

kuan121 · 2025-11-23T18:58:10Z

XLS-0066d-lending-protocol/README.md

+
+- The borrower's balance is **decreased** by `totalPaidByBorrower`.
+- The `Vault` pseudo-account's balance is **increased** by `totalToVault`.
+- The `LoanBroker.Owner`'s balance OR the `LoanBroker` pseudo-account's balance is **increawsed** by `totalToBroker`, depending on the fee destination.


Typo: ... is **increased** by ...

kuan121 · 2025-11-23T20:54:08Z

XLS-0066d-lending-protocol/README.md

+| ----------------- | :----------------: | :-------: | :-----------: | :-----------: | :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
+| `TransactionType` | :heavy_check_mark: | `string`  |   `UINT16`    |     `78`      | Transaction type.                                                                                                                                                                                      |
+| `LoanBrokerID`    |                    | `string`  |   `HASH256`   |     `N/A`     | The Loan Broker ID from which to withdraw First-Loss Capital. Must be provided if the `Amount` is an MPT, or `Amount` is an IOU and `issuer` is specified as the `Account` submitting the transaction. |
+| `Amount`          |                    | `object`  |   `AMOUNT`    |       0       | The First-Loss Capital amount to clawback. If the amount is `0` or not provided, clawback funds up to `LoanBroker.DebtTotal * LoanBroker.CoverRateMinimum`.                                            |


It seems to me that the description of Amount is conflicting with the information in

##### 3.1.5.2 State Changes - If `Amount` is 0 or unset, set `Amount` to `LoanBroker.CoverAvailable - LoanBroker.DebtTotal * LoanBroker.CoverRateMinimum`.

Do we clawback up to LoanBroker.DebtTotal * LoanBroker.CoverRateMinimum or LoanBroker.CoverAvailable - LoanBroker.DebtTotal * LoanBroker.CoverRateMinimum?

or LoanBroker.CoverAvailable - LoanBroker.DebtTotal * LoanBroker.CoverRateMinimum?

This appears to be the correct interpretation.

Look into this file for more details about LoanBrokerCoverClawback.

Here is the implementation:

Tapanito added 2 commits October 18, 2024 18:28

adds lending protocol spec

ba3a750

improves the description of the management fee

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renames field names from plural to singular

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Tapanito and others added 7 commits January 27, 2025 16:40

removes CoverAvailable check from LoanBrokerDelete transaction

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Apply suggestions from code review

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Co-authored-by: Ed Hennis <ed@ripple.com>

cleans up latex code

1a437ee

updates LoanDelete transaction to delete the LoanBroker DirectoryNode…

9f47ea2

… when the last Loan is delete

in case insufficient first loss capital add loan broker fees to cover…

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… for the missing flc

fixes loan object ownership

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adds pseudo-account to the LoanBroker

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ximinez approved these changes Jan 29, 2025

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Tapanito added 2 commits January 31, 2025 12:51

adds counterparty to LoanSet transaction

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Update XLS-0066d-lending-protocol/README.md

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Co-authored-by: Ed Hennis <ed@ripple.com>

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addresses PR comments

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Tapanito added 3 commits October 21, 2025 14:27

adds loan overpayment flag to LoanPay transaction

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adds description of rounding error handling

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adds balance checks to loan pay

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mvadari changed the title ~~XLS-0066d Lending Protocol~~ XLS-0066 Lending Protocol Oct 22, 2025

Tapanito added 7 commits October 23, 2025 10:43

adds loan scale field

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completely rewrites they loanPay transaction

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adds extra guards to loanset transaction

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adds missing fullpayment flag in pseudo-code

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adds missing fee

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adds missing fee

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renames PreviousPaymentDate to PreviousPaymentDueDate

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pdp2121 mentioned this pull request Nov 10, 2025

feat: Support for XLS-0066 Lending Protocol ripple/explorer#1259

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Tapanito added 2 commits November 13, 2025 18:09

restores excess handling

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adds equation glossary

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gregtatcam suggested changes Nov 15, 2025

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shawnxie999 reviewed Nov 17, 2025

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adds valueChange to 3.2.4.2

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kuan121 reviewed Nov 23, 2025

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ximinez mentioned this pull request Dec 1, 2025

Lending protocol Part 2 - XLS-66 XRPLF/rippled#6093

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		The total fee for the transaction will be increased due to the extra signatures that need to be processed, similar to the additional fees for multisigning. The minimum fee will be $(\|signatures\| + 1) \times base_fee$ where $\|signatures\| == max(1, \|tx.CounterPartySignature.Signers\|)$

		The total fee calculation for signatures will now be $(1 + \|tx.Signers\| + \|signatures\|) \times base_fee$. In other words, even without a `tx.Signers` list, the minimum fee will be $2 \times base_fee$.


		##### 2.2.2.2 TotalValueOutstanding

		The total outstanding value of the Loan, including all fees. To calculate the outstanding interest portion, use this formula: `TotalInterestOutstanding = TotalValueOutstanding - PrincipalOutstanding - ManagementFeeOutstanding`.


		### 1.2.2 Freeze

		Freeze is a mechanism by which an asset Issuer (IOUT or MPT, not XRP) freezes an `Account`, preventing that account from sending the Asset. Deep Freeze is a mechanism by which an asset Issuer prevents and `Account` from both sending and receiving and Asset. Finally, an Issuer may enact a global freeze, which prevents everyone from sending or receiving the Asset. Note that in both single-account and global freezes, the Asset can be sent to the Issuer.


		If the Issuer freezes a Borrower's account, the Borrower cannot make loan payments. However, a frozen account does not lift the obligation to repay a Loan. If the Issuer Deep Freezes a Borrower's account, the Brrower cannot make loan payments.

		A Deep Freeze does not affect the Loan Broker's functions. However, a Deep Freeze will prevent the Loan Broker from receing any Lending Protocol Fees.


		A Deep Freeze does not affect the Loan Broker's functions. However, a Deep Freeze will prevent the Loan Broker from receing any Lending Protocol Fees.

		The Issuer may also Freeze of Deep Freeze the `_pseudo-account_` of the Loan Broker. A Freeze on the `_pseudo-account_` will prevent the Loan Broker from creating new Loans. However existing Loans will not be affected. In contrast, a Deep Freeze, will also prevent the Loans from being paid.

		- Otherwise:

		- Increase the `RippleState` balance between the `LoanBroker.Owner` `AccountRoot` and the `Issuer` `AccountRoot` by `Loan.LoanOriginationFee`.

XLS-0066 Lending Protocol #240

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XLS-0066 Lending Protocol #240

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