- XRP Ledger’s lending protocol passed a Halborn re-audit with no critical flaws detected.
- The protocol’s most serious vault asset limit issue was fixed before deployment and audit.
- The latest review strengthens confidence as XRPL moves closer to launching native lending functionality.
The XRP Ledger’s upcoming Lending Protocol has passed a full re-audit by cybersecurity firm Halborn. The final review found no critical or high-severity vulnerabilities after examining major code changes made since the previous audit.
Commissioned by Ripple, the re-audit examined updates from December 2025 to January 2026. Halborn reviewed the protocol’s security, transaction logic, state consistency, access controls, and compliance with the XLS-0066d specification.
According to the report, Halborn identified:
- 0 Critical vulnerabilities
- 0 High-severity vulnerabilities
- 1 Medium-severity issue
- 2 Low-severity issues
- 2 Informational findings
The results mean the most serious security issues had already been resolved before deployment. To assess the protocol, Halborn combined code-diff analysis, manual code reviews, specification verification, and automated security testing.
Medium-Severity Vault Limitation Issue Resolved Also
A significant finding was a potential bypass of a vault’s AssetsMaximum limit. Halborn found that loan interest calculations could allow a vault’s total assets to exceed its configured cap. This was possible because LoanSet transactions lacked a validation check that already existed for deposits.
In a proof-of-concept test, a vault with a 100,000-unit asset limit could exceed that threshold through accumulated loan interest. This was a medium-severity issue and has been fixed.
Ripple said that its developers had independently identified and patched the vulnerability before the audit officially began. The fix was completed on December 17, 2025.
Low-Severity Findings
One low-severity finding was what Halborn called a “degraded state”. Under certain configurations, liquidation coverage rates set below 100% could create problems if multiple loans defaulted. Available cover could fall below required levels, preventing new loans from being created while existing defaults continued. This could temporarily freeze parts of the protocol.
Ripple chose not to patch the issue directly. Instead, it accepted the risk, noting that the problem would disappear in Lending Protocol V1.1. The upcoming version removes the CoverRateLiquidation parameter entirely.
Another low-severity issue was LoanBroker account creation on frozen vaults.
While lending operations were already blocked on frozen vaults, users could still create broker accounts. This could result in reserve funds being locked unnecessarily. Ripple has since fixed the issue.
Core Security and Protocol Integrity
Halborn’s review focused on several critical areas, such as:
- Transaction validation
- State transition consistency
- Loan lifecycle management
- Vault and broker operations
- Permission enforcement
- Freeze handling
- Edge-case behavior
- Specification-to-code consistency
The firm also reviewed node stability risks, payment-processing limits, mathematical calculations, and amendment-gating mechanisms across the XRPL codebase.
The final report concluded that no critical or high-severity vulnerabilities remain in the audited Lending Protocol. The remaining findings have either been resolved, acknowledged, or accepted as design trade-offs ahead of future upgrades.
Lending Protocol Nears XRPL Launch
The successful re-audit marks another step for the XRP Ledger’s DeFi ecosystem. As Ripple expands native lending infrastructure on XRPL, the review confirms the protocol has reached a more mature stage of development. Previously identified weaknesses have been addressed, and Halborn’s assessment found no major security threats.
These findings will boost the confidence of developers, institutions, and other participants as XRPL’s DeFi capabilities improve.
Related: XRP Ledger Prepares for Its Next Phase With Five Major Upgrades
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
