Ripple Offers $200K to Hackers Who Can Break New XRP Lending Protocol

TLDR

• Ripple and Immunefi are hosting a $200,000 Attackathon from October 27 to November 29 to find vulnerabilities in the new XRPL Lending Protocol
• Security researchers will examine over 35,000 lines of C++ code and earn rewards in RLUSD stablecoin for discovering bugs
• The XRPL Lending Protocol introduces fixed-term, uncollateralized loans for institutions without smart contracts or wrapped assets
• An education phase is already active through XRPL Attackathon Academy, offering live sessions with Ripple engineers and developer resources
• The protocol is in final development stages and will be voted on by XRPL validators this month for potential deployment in early 2026

Ripple has partnered with Immunefi to launch a $200,000 bug bounty program for its upcoming XRP Ledger Lending Protocol. The Attackathon will run from October 27 to November 29, inviting security researchers worldwide to examine the protocol’s code.

Participants will review over 35,000 lines of C++ code to identify potential security vulnerabilities. Rewards will be paid in Ripple’s stablecoin, RLUSD, based on the severity of bugs discovered.

An educational phase is already underway through the XRPL Attackathon Academy. The program provides hands-on guidance, live sessions with Ripple engineers, and test environments for participants.

Jasmine Cooper, Ripple’s director of product, said the partnership with Immunefi allows the company to work with top security researchers. The goal is to strengthen XRPL’s DeFi infrastructure before developers begin building on the protocol.

The initiative is part of Ripple’s institutional DeFi roadmap announced last month. The company aims to ensure financial institutions can safely use the lending protocol when it launches.

Understanding the XRPL Lending Protocol

The XRPL Lending Protocol introduces fixed-term, uncollateralized loans directly on the XRP Ledger. Unlike typical DeFi lending platforms, it avoids smart contracts and wrapped assets.

Credit assessments occur off-chain, allowing institutions to apply their own risk models. However, funds are pooled and managed on-chain to maintain transparency and security.

The protocol is governed by the new XLS-66 standard. This design represents Ripple’s effort to bring traditional credit markets into the blockchain space.

Institutions that prefer collateralized loans can structure them through regulated custodians. This approach blends blockchain efficiency with institutional trust requirements.

Cooper previously stated that the XRP Ledger has tens of thousands of XRP holders who currently lack opportunities to earn yield. The lending protocol aims to unlock this untapped asset base.

Bug Bounty Details and Security Focus

The Attackathon carries a total reward pool of $200,000. If at least one valid bug is reported, the full amount will be distributed among participants.

If no major vulnerabilities are found, a fallback pool of $30,000 will be shared with researchers who provided valuable insights. Priority targets include liquidation logic, interest accrual, and access control systems.

The most impactful discoveries will involve vulnerabilities that could affect vault solvency or asset safety. Ripple and Immunefi have identified these as critical areas requiring thorough examination.

Bug bounty programs are a common method for developers to crowdsource security testing. Projects post their code publicly and offer cash rewards to those who identify weaknesses.

Code bugs have previously cost DeFi protocols billions of dollars. In May, Cetus, Sui’s largest decentralized exchange, lost an estimated $223 million in a hack.

In 2023, a hacker exploited a code bug in lending protocol Euler to steal $197 million. The funds were later returned by the hacker.

The XRP Ledger experienced a security breach in April. A hacker compromised software used by developers, implanting code designed to steal private keys.

In August, blockchain research firm Kaiko gave the XRP Ledger a security rating of 41 out of 100. This was the lowest score among 15 blockchains analyzed.

The XRPL Lending Protocol is in its final development stages. Validators will vote on the protocol this month to decide if it will be added in a coming upgrade. If approved, the protocol could be deployed around the start of 2026.

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