The XRP Ledger Foundation released xrpld version 3.4.0 on Sept. 16, introducing the LendingProtocolV1_1 amendment, a new cleanup amendment and a revised approach to distributing Linux server packages, according to the foundation's release announcement.

The upgrade adds closed-ended lending vaults and cash-basis accounting to the ledger's server software, but the new rules are not yet active on the XRPL mainnet because validator approval is still required. The release moves the XRP Ledger closer to supporting fixed-term onchain lending while also hardening several existing protocol components.

XRP traded near $1.32 on Sept. 18, up roughly 2% over the past 24 hours, with analysts watching $1.18 as a key downside reference and $1.63 as the main upside level in the current technical setup.

Lending V1.1 Redesigns Vault Mechanics

The changes around version 3.4.0 center on LendingProtocolV1_1, which reshapes how Single Asset Vaults can support lending. The amendment introduces closed-ended vaults with separate subscription, investment, and redemption periods.

Depositors can add or withdraw assets during the subscription period. The vault then stops deposits and withdrawals during the investment period while its assets fund loans. Redemption begins after the investment period ends and the underlying loans reach maturity. The staged structure makes each phase explicit, so participants can see in advance when their assets remain withdrawable and when they are committed until loan maturity.

LendingProtocolV1_1 also brings cash-basis accounting to new vaults. Under this model, a vault records interest only after a borrower makes a payment. Earlier rules recognized scheduled interest at the time a loan originated. Existing vaults keep their earlier accounting model rather than migrating automatically to the new framework; the change applies to vaults created after activation.

Amendment Awaits Validator Consensus

The new lending amendment does not activate simply because an operator installs xrpld 3.4.0. On theRP Ledger, network rules change only when amendments draw more than 80% support from trusted validators for two continuous weeks. A Sept. 17 network snapshot showed 16 of 35 trusted validators supporting SingleAssetVault and 13 backing LendingProtocol. Those figures can shift as validators update their votes, and the threshold determines when the network's rules take effect. Because shipping code and switching rules on are separate steps under this model, following those vote counts as they change is how readers can gauge each amendment's distance from the activation threshold.

Protocol and Node Fixes in 3.4.0

The fixCleanup3_4_0 amendment covers vaults, automated market makers, Multi-Purpose Tokens (MPTs), escrow, credentials and permissioned trading. One change stops AMMClawback from burning liquidity-provider tokens when MPT rounding produces zero underlying assets. Other changes strengthen MPT balance checks and adjust vault calculations near precision limits.

The release also changes transaction signing. XRPL now uses separate signing hash prefixes for counterparty and sponsor signatures, a design that prevents a signature created for one role from working as the other. Developers tightened permissioned DEX checks as well and corrected handling for expired credentials during OfferCreate and Payment transactions.

Lower-level node protections are also part of the release. Developers capped incoming TMTransactions lists and addressed an unbounded database seek through TMGetLedger. The software now charges a fee for transactions that nodes cannot deserialize. In addition, online deletion pauses when a node detects missing ledger history, which helps the server stay closer to the latest validated ledger.

Distribution of the server software is changing as well. The XRP Ledger Foundation now hosts Debian and RPM packages through packages.xrplf.org and signs them with its own key. Developers asked server operators to install version 3.4.0 quickly to maintain service continuity, noting that operators using older repository settings may need to update their configuration before installing the package.

$1.18 Level Stays in Focus for Traders

XRP traded near $1.32 on Sept. 18, up 2% in the last 24 hours. A chart shared on X marks $1.18 as a key downside level and shows a broader white zone below the current price. Analyst EGRAG, in a separate X post, also labels $1.05, $0.97, $0.85 and $0.777 as deeper downside reference levels, while the chart marks $1.63 near the upper resistance area.

EGRAG outlined two possible paths for the next one to two weeks. One path shows a relief bounce from the current area. The other shows XRP moving lower toward $1.18 and potentially revisiting the white range. The analyst calls the broader zone a macro accumulation area, a description that reflects the chart author's analysis rather than a confirmed market outcome.

For traders, the charts place $1.18 at the center of the near-term setup. Holding above that level would keep price inside the analyst's projected range. The validator vote counts on the lending amendments offer a separate, protocol-side marker to follow, since activation is what would make the closed-ended vault framework available for vaults created afterward.

This article is for informational purposes only and does not constitute financial or investment advice. Protocol upgrades, validator votes and technical price levels do not guarantee future XRP performance.