The XLS-66d amendment embeds lending logic directly into the protocol, removing many risks tied to standalone smart contracts. The ledger itself governs borrowing terms, repayments, and authorization—a key differentiator from other DeFi approaches.Credit checks and risk assessments happen off-chain through established underwriting processes. Pool managers handle borrower selection, loan servicing, and first-loss protection, which absorbs early defaults before lenders take losses. This setup mirrors traditio ...