RippleX, the team behind the XRP Ledger’s reference server software, has shipped xrpld version 3.4.0, adding two new amendments that extend the network’s native lending features. The release, published on the XRPL Foundation’s GitHub repository on September 17, introduces the LendingProtocolV1_1 and fixCleanup3_4_0 amendments and retires fixAMMOverflowOffer, according to the release notes.
Closed-Ended Vaults and Cash-Basis Accounting
The headline change is LendingProtocolV1_1, which extends the existing LendingProtocol and SingleAssetVault amendments. The update introduces closed-ended vaults, a structure that moves through three phases — subscription, investment and redemption — that determine when assets can be deposited, when loans can be originated and when assets can be redeemed. Once the amendment is enabled, new loan brokers can only be created against closed-ended vaults. The release also shifts vault accounting to a cash basis, so interest is recognized as income only when payments are actually made, rather than being booked at the moment a loan is originated.
Bundled Fixes and a Retired Amendment
The release also carries fixCleanup3_4_0, which bundles several amendment-gated fixes. The asfDisallowIncomingTrustline flag now applies to OfferCreate, so an account without a trust line can no longer use an offer to receive tokens from an issuer that set the flag. Deleted domain offers are excluded from the Permissioned DEX invariant, and AMMClawback is patched to avoid silently recovering zero when integer rounding floors an amount. The amendment also lets the clawback bypass the owner-reserve check when it must auto-create a paired asset holding. Separately, fixAMMOverflowOffer is retired and folded permanently into the protocol. The work extends earlier XRPL amendment releases, including the Batch V1.1 amendment RippleX shipped in September.
Operators Told to Upgrade
Version 3.4.0 also moves the xrpld DEB and RPM packages to packages.xrplf.org, now signed with an XRPLF key, and urges anyone running an XRP Ledger server to upgrade as soon as possible to ensure service continuity. As with other XRPL changes, the new amendments do not activate immediately. LendingProtocolV1_1 and fixCleanup3_4_0 remain gated behind the network’s validator-voting process, so the code ships now while activation depends on the amendment process. The release is the latest in a steady stream of XRPL updates, which recently added support for Stripe and Tempo’s AI payment standard.
Why the Lending Upgrade Matters
Cash-basis accounting changes how vault income is reported: interest is only realized when a borrower actually pays, which reduces the risk of a lending protocol overstating earnings before cash arrives. Closed-ended vaults, with their defined subscription, investment and redemption phases, give lenders and borrowers a clearer structure for when capital can enter and leave. For the wider XRP Ledger ecosystem, the release signals that native DeFi tooling remains an active development priority, even as each change stays gated behind validator approval.
