XRP lending model leaves depositors with 90% of a bad loan’s loss despite reserves twice its size

The value backing depositors' shares in a modeled XRP Ledger loan book falls by 90,000 tokens when one loan defaults, compared with 4,500 when the same 100,000 tokens of bad debt sits in ten smaller loans. Both books start with 1 million tokens of debt, a 200,000-token reserve and identical protection settings.The 20-fold gap comes from how the documented lending rules release that reserve. Each default gets a separate cover calculation. Loan size therefore changes how much loss reaches depositors, even when the total unpaid debt and the capital available to absorb it stay the same at the outset.XRPL's lending design pools assets in a vault and extends fixed-term, uncollateralized loans through a broker responsible for underwriting. Depositors hold shares in the vault, whose value falls when the assets backing them suffer losses. The pooled asset can be XRP, a trust-line token or a Multi-Purpose Token (MPT).CryptoSlate's comparison models that immediate write-down using documented rules and matching 3.3.0 release code, announced Aug. 6. The figures are hypothetical. Mainnet activation was unconfirmed in the official amendment registry checked Sept. 6, which listed LendingProtocolV1...