XRP Ledger's new proposal blocks the flash loan attacks costing DeFi hundreds of millions
The XRP Ledger is proposing an amendment to prevent flash loan attacks, which have caused significant financial losses in the DeFi sector. The network's unique transaction architecture makes these specific exploits structurally impossible.
Why it matters
This highlights a potential competitive advantage for the XRP Ledger as it seeks to attract institutional investors concerned about security in decentralized finance.
Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email XRP Ledger s new proposal blocks the flash loan attacks costing DeFi hundreds of millions A draft XRPL amendment notes that flash loan attacks are "structurally impossible" on the network because of how its transactions are built, an architectural quirk that has spared the chain from the exploit class that has cost Ethereum DeFi billions. By Shaurya Malwa May 31, 2026, 2:30 a.m. 3 min read Make preferred on What to know : Recent DeFi exploits on protocols like Thorchain, Drift and KelpDAO have relied on flash loans, a mechanism that does not exist on the XRP Ledger. Because XRPL transactions are atomic and cannot include composable intra-transaction calls, flash loan attacks are structurally impossible on the network. As XRPL pursues AMM upgrades and its tokenized real-world asset volume grows, institutional investors may weigh this built-in exploit resistance against Ethereum’s deeper liquidity and more mature DeFi ecosystem. The two biggest DeFi exploits of the past two months have one thing in common. They used a tool that does not exist on the XRP Ledger.
The report focuses on technical security features and market implications without taking a stance on the value of the underlying assets.
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