SOIL races to launch XRP Ledger’s first native lending app

SOIL is positioning itself to launch the first native lending application on the XRP Ledger, contingent on the network activating the proposed XLS-65 and XLS-66 amendments. The development represents a significant step toward expanding DeFi functionality on the XRP Ledger ecosystem.

SOIL's initiative to build XRP Ledger's first native lending application signals growing momentum to enhance the network's DeFi capabilities. The XLS-65 and XLS-66 amendments would introduce native lending infrastructure directly into the protocol, reducing reliance on external bridges and wrapped assets that typically carry execution risk. This architectural approach differs from traditional DeFi platforms and could streamline user experience by eliminating intermediary layers.

The XRP Ledger has historically lagged Ethereum and Solana in DeFi total value locked, partly due to technical limitations around complex smart contract functionality. The proposed amendments address this gap by embedding lending mechanics at the protocol level. SOIL's positioning as the first mover provides competitive advantage if these amendments activate, similar to how early applications captured value during Ethereum's DeFi explosion in 2019-2020.

For the broader XRP Ledger ecosystem, native lending infrastructure could attract capital from traders seeking yield opportunities and borrowers needing liquidity without Ethereum's gas costs. Institutional investors and regulated entities might find protocol-level lending more compliant than decentralized alternatives, given Ripple's focus on regulatory partnerships.

The critical catalyst remains amendment activation, which requires community consensus among XRP Ledger validators. Market participants should monitor governance discussions and voting timelines. Success depends not only on technical implementation but also on whether SOIL can differentiate its product and build sufficient liquidity to compete with established platforms like Aave and Compound.

• →SOIL aims to become the first native lending app on XRP Ledger pending XLS-65 and XLS-66 amendment activation
• →Protocol-level lending infrastructure could reduce execution risk by eliminating wrapped asset bridges
• →Native lending could accelerate XRP Ledger's DeFi adoption by lowering costs and improving user experience
• →Amendment activation requires validator consensus, making governance decisions a critical success factor
• →Early mover advantage positions SOIL similarly to first-generation DeFi protocols on Ethereum