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RippleX developers have unveiled a game-changing proposal that intends to introduce a native lending protocol, codenamed XLS-66d. 

The new proposal lays the groundwork for deploying a groundbreaking lending protocol directly on XRP Ledger, which is intended to revolutionize how lending takes place on the blockchain. 

The proposal establishes mechanisms for fixed-term, interest-accruing loans pooled from collective funds that do not require on-chain collateral. This strategy secures the protocol using off-chain underwriting and risk management, as well as a First-Loss Capital protection plan.

At its core, the protocol will allow for easy lending, with terms agreed upon directly by the borrower and the lending pool's delegated manager. Unlike traditional lending protocols in DeFi, which are smart contracts that run on a virtual machine, the XRPL's Lending Protocol will be integrated directly into the ledger's consensus layer and protocol.

The lending protocol would allow liquidity providers to contribute XRP or other fungible tokens into a lending pool managed by a pool delegate, earning interest.

With an eye toward future development, the protocol will be designed to be both upgradeable and adaptable, allowing for a wide range of prospective enhancements while maintaining backward compatibility. 

The lending portion of the specification is intended to be implemented on top of another specification, resulting in a single asset vault on XRP Ledger. This is intended to open up other use cases beyond loans in the future, like yield farming, escrow and more. 

By using general ledger entries rather than single-use ones, the protocol ensures that components such as pseudo-accounts and tokenized pools can be used in a variety of future applications.