Woofun AI reports that Vet, a community leader and validator for the XRP Ledger Foundation, has unveiled amendments XLS-65, XLS-66, XLS-0096, and XLS-70 to embed native lending and privacy directly into the network. This strategic move targets the construction of a comprehensive DeFi stack at the protocol level, thereby eliminating the necessity for external smart contracts or bridges.

The technical core of this initiative relies on XLS-65 and XLS-66 to establish a native lending protocol, allowing XRP holders to lend and borrow assets without leaving the ledger.

Concurrently, XLS-0096 addresses privacy and delegation of authority, granting users enhanced transactional confidentiality and the ability to delegate decision-making powers. These features collectively aim to streamline user interactions while maintaining strict control over asset management and data visibility.

Per Woofun AI, XLS-70 introduces digital identity verification, a critical mechanism for ensuring regulatory compliance and facilitating institutional adoption. By integrating these capabilities natively, the XRP Ledger seeks to reduce reliance on third-party protocols, external smart contracts, and bridges. This structural shift is designed to minimize the attack surface associated with external dependencies, thereby enhancing overall security for the network.

The proposals emerge as the broader cryptocurrency market prioritizes regulatory clarity and institutional-grade infrastructure.

However, these amendments remain in the proposal stage, requiring community consensus and validation before activation. The success of this initiative hinges on robust community engagement and precise technical implementation, with security improvements serving as a key value proposition for potential adopters.

If approved, these changes could set a precedent for other blockchain networks to prioritize native functionality over third-party dependencies. This evolution may significantly reshape the DeFi landscape, offering stakeholders a more integrated and secure environment. As the community deliberates, the outcome will be closely monitored by stakeholders across the cryptocurrency industry.