Ripe protocol's extensible deposit framework allows users to access yield opportunities from other DeFi protocols. Once governance approves an integration, it becomes a deposit strategy on Ripe. For example, a USDC depositor can choose strategies like Aave, Compound, Yearn, Morpho, or Fluid, earning the same yield as if they deposited directly into the protocol.

Depositing into strategies via Ripe offers two key advantages beyond the native yield:

• Endaoment Yield: As the Endaoment generates yield, a portion is shared with Ripe depositors (governance decides via a gauge-weight voting system).

• RIPE Rewards: During the bootstrapping phase, governance can decide to distribute RIPE tokens to depositors as an additional reward.

Even assets without native yield, like wBTC or NFTs, can earn real, sustainable yield through the Endaoment. This is how users can "earn yield on anything."

Users can lock deposits, with or without a loan, to earn a larger share of Endaoment Yield and RIPE Rewards. Early withdrawals are allowed with a small exit fee.

Locked assets serve as “soft backing” for GREEN, supporting the system without being seizable unless tied to an outstanding loan (in which case they become “hard backing”). Governance uses this data to adjust bonding parameters like capacity and discounts.

Ripe allows users to borrow against deposited assets, with risk parameters set by governance for each strategy and asset. For example, users might be able to borrow up to 80% of stablecoin value, like USDT, but only 50% for NFTs like CryptoPunks or tokenized equities.

Deposits are aggregated to determine borrowing capacity, enabling users to secure a single loan backed by multiple assets. This simplifies debt management and reduces risk by diversifying collateral. Unlike most DeFi lending protocols, Ripe offers instant borrowing without requiring a counterparty.

Loans are issued in GREEN, a synthetic stablecoin pegged to the US Dollar and fully backed by collateral, similar to MakerDAO’s DAI. Users can deposit GREEN into the Stability Pool to earn yield, use it in other DeFi protocols, or swap it for other assets.

Interest rates are dynamic, based on factors such as asset risk, debt utilization, GREEN’s peg stability, and the borrower’s Juice Score. If collateral value nears the loan amount, liquidation may occur. Interest accrues in GREEN and can be repaid anytime, with all interest going to the Endaoment.

Unique to Ripe, even collateralized assets continue to be productive and earn yield, allowing users to maximize the utility of their holdings while managing debt.

If a user's collateral value drops too close to their debt amount, they risk liquidation. The protocol only claims enough assets to restore a healthy collateralization ratio, usually resulting in only partial liquidation. Liquidations are vital for ensuring GREEN stays backed and stable.

To ensure efficient liquidations, Ripe employs several methods, each as a fallback if the prior one is insufficient:

• Stability Pool: Instantly buys liquidated collateral at a discount.

• Endaoment: Claims stablecoins from the liquidated user.

• Token Auctions: Users can buy liquidated fungible assets at increasing discounts over time.

• NFT/RWA Auctions: Liquidated NFTs/RWAs are auctioned, with the highest bid winning at auction close.

Regulated or permissioned assets such as RWAs bypass the Stability Pool and Endaoment. Only allowlisted users can participate in auctions for these assets.

The growth of most DeFi stablecoins is limited by how much users are willing to borrow, using crypto-only collateral. Ripe, however, supports a broader range of on-chain and off-chain assets, enabling it to scale to a mass market.

GREEN supply can also grow through locked deposits. Users can lock assets as "soft backing" for GREEN, boosting bond capacity, minting more GREEN, growing the Endaoment, and earning yield on their assets.

GREEN’s growth is limited only by the speed at which real-world assets are tokenized and brought on-chain. These assets include stocks, bonds, currencies, real estate, and personal items like houses, cars, and small businesses.

User debt drives demand for GREEN, as borrowers must repay loans to unlock collateral, creating consistent buying pressure. If GREEN falls below its peg, borrowers are incentivized to buy and repay debt at a discount. During prolonged peg pressure, borrower interest rates will programmatically rise, further encouraging repayment.

During market volatility, borrowers are motivated to repay to avoid liquidation, helping counter sell pressure. A healthy debt level in the Ripe protocol ensures sustained demand for GREEN.

If borrowers can't repay, Ripe automatically liquidates their loans, with collateral claimed by Stability Pool depositors or auctioned at a discount. These mechanisms keep GREEN durable and overcollateralized, even during market shocks.

Building GREEN liquidity is essential for protocol success. Greater liquidity encourages more borrowing and bonding, leading to a healthier Endaoment and a stronger growth flywheel.

The protocol seeks to acquire GREEN LP from various actions, including liquidations (Stability Pool), debt repayments, auction payments, and early withdrawal fees. While these actions can also use regular GREEN, the incentives are higher for GREEN LP.

Redemptions are crucial for maintaining GREEN's dollar peg. When GREEN falls below its peg, users or arbitrageurs can buy it at a discount and redeem it for $1 worth of assets, helping restore the peg. In the Ripe protocol, redemptions can occur in three ways:

• Endaoment Redemptions: disabled by default to preserve assets, but governance can activate them during severe peg pressure.

• Debt Position Redemptions: collateral assets can be redeemed when a borrower nears liquidation, with borrowers always having clear visibility of this threshold.

• Stability Pool Claims: when assets are liquidated into the Stability Pool, users can redeem GREEN for those assets, allowing participants to auto-compound without managing claims.

Since GREEN is a synthetic stablecoin, its supply fluctuates as it is minted or burned. The supply increases when users take out loans, buy GREEN bonds, or receive Endaoment yield distribution. Additionally, if GREEN trades above its peg, the Endaoment can mint more GREEN and add liquidity to the main pool.

The supply decreases when users repay loans, either directly or through Stability Pool liquidations. When users redeem GREEN for other assets (via the Endaoment, Debt Positions, or Stability Pool Claims), the redeemed GREEN is burned. If GREEN falls below its peg, the Endaoment can withdraw and burn GREEN to stabilize the pool.

A higher Juice Score can have a significant economic impact, as the protocol rewards users based on their contributions. Key benefits of a higher Juice Score include:

• Larger shares of Endaoment Yield and RIPE Rewards.

• Better borrowing terms, including interest rates, loan-to-value ratios, and other debt terms.

• Greater discounts on bonding and auction purchases.

• Lower fees on GREEN redemptions from the Endaoment.

• Reduced fees for exiting deposit locks.

The Juice Score incentivizes actions that benefit the protocol. Key activities that boost a user's score include:

• Borrowing: drives demand for GREEN, generates revenue, and grows Endaoment.

• Governance/Staking: strengthens decentralization, making protocol more resilient.

• Stability Pool: absorbs liquidations, reduces bad debt, and enhances GREEN liquidity.

• Bonding: increases assets in the Endaoment.

• Auction Purchases: pays down debt for liquidated users.

• Collateral Redemptions: lowers liquidation risk by redeeming GREEN on risky debt.

• Swap Assists: converts idle GREEN into USDC to increase Endaoment productivity.

Many actions have a decay factor, encouraging regular participation.

The Juice Score is calculated by summing the dollar value of a user’s positive actions (adjusted for decay) and dividing it by the total value of their deposits, excluding Governance and Stability Pool deposits.

For example, with $1,000 in normal deposits, $500 in debt, and $250 in bonds, the Juice Score would be 75 ($750 ÷ $1,000). In another case, if a user has $350 staked in Governance, $350 in the Stability Pool, and $350 in normal deposits, the calculation would be 200 ($700 ÷ $350), but since the maximum score is 100, it is capped at 100.

Ripe community members who participated in Sepolia testnet seasons received Juice Boost NFTs, which temporarily increase the holder's Juice Score when deposited in the protocol. Top performers received a larger boost, and each NFT has a fixed duration for the boost.