As the XRP community eyes opportunities for passive income through lending, industry commentators remain divided on the associated risks and the timing. Vandell Aljarrah, co-founder of Black Swan Capitalist, sparked a discussion on X by urging XRP holders to adopt a long-term mindset when considering lending their tokens. He argued that significant returns from XRP lending are unlikely to materialize through current DeFi channels alone. Aljarrah emphasized that meaningful returns will only emerge once financial advisors begin recommending XRP to high-net-worth clients. He believes this will require a regulatory framework that ensures insurance and protection for lenders. Notably, the XRP Ledger, unlike networks such as Ethereum and Solana, offers limited DeFi services that allow token holders to earn passively. With most XRP remaining idle, several initiatives have emerged aiming to provide holders with opportunities to earn moderate yields on their assets. However, some observers, including Aljarrah, caution that investors may be putting themselves at risk by relying on third-party services to earn yields on their XRP. Divided Opinions: Security vs. Opportunity The post sparked a flurry of responses from the XRP community. While some echo Aljarrah’s caution, warning about the dangers of premature lending, others view current platforms as viable options offering attractive yields. One user, Jack Joseph, warned that impatience could lead to irreversible losses. Another commentator stated they would never lend their XRP until legislative clarity is established. Calling the current environment “the Wild West,” user BLKWOLFCapital emphasized the potential dangers of trusting unregulated DeFi services. Still, some users pointed to the potential gains from even modest returns. User Heath Junkie estimated that a 2% return on a $1 million XRP portfolio could yield $20,000 annually. He suggested that for large holders, even conservative lending could pay off significantly if executed safely. Meanwhile, Aljarrah acknowledged these perspectives. He clarified that while there are opportunities in the current environment, the decision ultimately comes down to individual risk tolerance. “There’s no right or wrong,” he said. There’s definitely opportunity now, and acknowledge that. There’s no right or wrong. I’m just sharing my opinion. You have to weigh the pros and cons & risk vs reward in the current environment. — Vandell | Black Swan Capitalist (@vandell33) May 2, 2025 Native Staking on XRPL with Support from Ripple Meanwhile, the XRP community is actively exploring native staking and lending on the XRP Ledger. Community member Mickle proposed implementing native XRP staking, citing Babylon Labs’ Bitcoin model as a reference. In response, Flare CEO Hugo Philion revealed that Flare is developing staking tools for XRPL using Flare XRP (FXRP). Additionally, Ripple engineers introduced the XLS-65 and XLS-66 proposals to enable native yield farming and decentralized lending. XLS-65 outlines a “Single Asset Vault” for flexible asset management and staking, while XLS-66 supports uncollateralized, fixed-term lending through these vaults. Both proposals confirm Ripple’s active role in bringing native staking and lending capabilities to XRPL.