V1_1 and the vote

LendingProtocolV1_1 is a separate amendment. It changes vaults and loans if validators enable it.

Fixed-term vaults. Under the original design, every vault is open-ended: people deposit and withdraw whenever they like. V1_1 adds closed-ended vaults, which work like a fund with a calendar:

1. Subscription. Deposits and withdrawals are open.
2. Investment. Money is locked, and loans are made.
3. Redemption. Withdrawals open again. Deposits stay closed.

The dates are set when the vault is created and cannot change. Check them before depositing.

Under V1_1, new loan brokers can only use closed-ended vaults. Every new loan must end before redemption starts. Brokers created earlier keep working.

Cash-basis accounting. In the original design, a vault counts all scheduled interest as income the moment a loan starts. Under V1_1, new vaults count interest only when the borrower pays it. A share's value then tracks money received, not money promised.

The vote. Validators vote on each amendment separately. An amendment turns on after more than 80% of trusted validators support it for two weeks. If support drops below 80%, the two-week clock starts again. A vote for LendingProtocol is not a vote for V1_1.

Vault changes (XLS-65.1):

• VaultCreate gains VaultKind (0 open-ended, 1 closed-ended), SubscriptionDate and RedemptionDate. The gap between the dates must be at least 180 seconds.
• VaultDeposit fails with tecEXPIRED after SubscriptionDate.
• VaultWithdraw fails with tecTOO_SOON during Investment. VaultClawback still works, so issuer controls are not blocked.
• Some vault fields become immutable. VaultDelete gains an optional MemoData of 1 to 256 bytes.

Loan changes (XLS-66.1.2):

• Creating a broker with LoanBrokerSet fails with tecNO_PERMISSION unless the vault is closed-ended. Updating an existing broker still works.
• LoanSet works only during Investment. The final payment date plus a 60-second buffer must not pass RedemptionDate.
• LoanPay, LoanManage and LoanDelete work in every phase, so late payments can still return to the vault.

Cash-basis accounting is described in the xrpld 3.4.0 release notes. The spec tree reserves XLS-66.1.1 for it but does not define it yet. In the 3.4.1 source it applies only to vaults created after V1_1 is enabled. Older vaults keep accrual accounting.

Releases and defaults:

With DefaultNo, a validator votes no until its operator chooses yes. Lending also needs SingleAssetVault enabled.

A server without the code for an enabled amendment becomes amendment blocked until it upgrades. Reversing an enabled amendment takes a new amendment. See How amendments happen.

Live count: Amendments page. Live count: Amendments page.