Lending Protocol - QA Test Report

Test Report Date: 01/28/2026
Prepared By: QA Team [mounikakun, sgramkumar]
Environment: GitLab CI Runner (Ubuntu 22.04)

Overview
This report presents the results of QA testing performed on Lending Protocol across xrpld network.

1. Feature

This section provides a brief summary of the feature being tested. The feature under test is designed to deliver specific functionality as defined in the project specifications.

Feature Name: Lending Protocol

Description:
This proposal introduces fundamental primitives for an XRP Ledger-native Lending Protocol. The protocol offers straightforward on-chain uncollateralized fixed-term loans, utilizing pooled funds with pre-set terms for interest-accruing loans. The design relies on off-chain underwriting and risk management to assess the creditworthiness of the borrowers. However, the First-Loss Capital protection scheme absorbs some of the losses in case of a Loan Default.

Specification Reference: https://github.com/Tapanito/XRPL-Standards/tree/xls-66-lending-protocol/XLS-0066-lending-protocol

2. Test Scope

This testing phase represents one of our most comprehensive quality assurance efforts, reflecting the inherent complexity and critical nature of the Lending Protocol. Unlike standard updates, this feature required an exhaustive deep dive into cross functional dependencies and multi layered ledger entries.

• Amortization & Interest Calculations: We conducted exhaustive verification of the Standard Amortization formulas, validating precision across varying interest rates and payment schedules. This included testing "Re-amortization" events to confirm that no value was lost or orphaned during mid loan adjustments ensuring that deposits and withdrawals within Vaults synchronize perfectly with loan funding and repayments, maintaining parity between ledger states.
• Graceful Edge Case Handling: Simulated varied conditions, including clawbacks and asset specific freezes, to confirm that the API and ledger entries remain consistent. Every valid and invalid input was mapped against the scenarios to guarantee that the API handles edge cases gracefully without compromising the integrity of the Vault, LoanBroker or Loan ledger entries.
• Security-First Evaluation (Attackathon): Successfully completed a specialized Attackathon to identify potential vulnerabilities. All identified bugs and issues were fully addressed and resolved to ensure the protocol's long term security and integrity.
• Comprehensive Integration: Performed rigorous testing across all system components to ensure seamless interaction between core features, while ensuring consistent enforcement of controls and restrictions across the system.
• Multi-Interface Validation: Executed testing across RPC and WebSockets to guarantee uniform system behavior and data consistency across the supported interfaces.

3. Types of Testing Conducted

Testing Type	Description
Functional Testing	Verifying each endpoint against defined specifications to ensure it behaves as expected.
Regression Testing	Running relevant test cases to confirm that recent changes did not break existing functionalities.
End to end Testing	Involves testing the complete flow of a feature confirming that different components of the application, potentially developed by different teams work together as expected.

4. Test Environment

Component	Details
OS	Ubuntu 22.04 (LTS)
CPU Cores	16
Memory	128 GB
Test Framework	Pytest/Shell script

5. Test Results Summary

Testing Type	Test Count
Feature Testing	796
Regression Testing	2880

Feature Tests
LoanBrokerSet	132
LoanBrokerDelete	24
LoanBrokerCoverDeposit	69
LoanBrokerCoverWithdraw	91
LoanBrokerCoverClawback	40
LoanSet	197
LoanDelete	37
LoanManage	77
LoanPay	129

Feature Commit:

commit 138d6e751b4e58853093eceb27e861af5e39129c
Author: Ed Hennis <[e-mail]>

    Implement Lending Protocol (unsupported) (#5270)

    - Spec: XLS-66
    - Introduces amendment "LendingProtocol", but leaves it UNSUPPORTED to
      allow for standalone testing, future development work, and potential
      bug fixes.
    - AccountInfo RPC will indicate the type of pseudo-account when
      appropriate.
    - Refactors and improves several existing classes and functional areas,
      including Number, STAmount, STObject, json_value, Asset, directory
      handling, View helper functions, and unit test helpers.

Feature Supported on Commit:

commit 919ded66940bbb18173ddee4014312917668b08a
Author: Ed Hennis <[e-mail]>

    Change LendingProtocol feature and dependencies to supported (#5632)

Testcases: https://dev.to/mounika_kunasani/lending-protocol-testcases-1ig4

6. Bugs Found

All internal bugs identified during the testing phase have been analyzed and resolved. Following the implementation of these fixes, extensive validation was performed, and no new bugs or regressions have been reported.

7. Conclusion

This feature has undergone comprehensive functional, regression, and end to end testing. The majority of the test cases have been executed successfully, with positive outcomes confirming that the core functionalities are working as expected.