LendProtocol — a centralized lending service, has launched a lending platform on the $XRP Ledger for loans in $XRP and $RLUSD. Users can earn 12% annual interest with daily payouts. To obtain a loan, a borrower must provide collateral amounting to 120% of the loan value.
LendProtocol operates as a centralized lending service and is not an $XRP staking platform. The $XRP Ledger itself does not use a Proof-of-Stake algorithm and does not pay staking rewards – therefore, to earn income from $XRP, users have to turn to third-party lending platforms, exchanges, and other services.
According to LendProtocol, over 743 million $XRP in loans have already been issued through the platform. The service is used by over 13.7 thousand active lenders. Borrowers pay 12.7% annual interest, of which lenders receive 12%. The remaining 0.7% constitutes the spread, which the platform uses to cover its operational expenses.
Collateral is accepted in Bitcoin, Ethereum, Solana, $XRP, $RLUSD, and USDT. LendProtocol states that in case of a loan default, it assumes the credit risk itself. To protect funds, the company uses cold storage, data encryption, and two-factor authentication.
Image: Magnific
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