Core Insights - Ripple is launching a new lending market for XRP holders to lend their tokens and earn yield directly on the XRP Ledger blockchain, aiming to enhance the adoption of decentralized finance (DeFi) on XRPL [1] - The XRP Army, a community of retail investors, represents a significant untapped asset for Ripple, with many holders currently lacking opportunities to earn yield on their XRP [2] - The lending protocol will allow for uncollateralized loans, pooling liquidity from smaller investors into institutional-sized loans while adhering to compliance standards [3] Group 1: Ripple's Lending Market - The new lending market will enable XRP holders to lend their tokens without collateral, managed by on-chain contracts [1][3] - Optional safeguards will be introduced, but the decision to trust institutions will ultimately rest with the lenders [4] Group 2: DeFi Landscape - The launch coincides with a boom in DeFi lending, with deposits to DeFi protocols reaching an all-time high of $130 billion [5] - Major lending protocols like Aave, Morpho, and Euler are attracting significant liquidity, primarily through overcollateralized loans [5] Group 3: Challenges in Unsecured Lending - The concept of allowing retail investors to engage in unsecured lending is not new, with previous attempts facing challenges in borrower creditworthiness [6] - Goldfinch, a protocol for lending to firms in emerging markets, has experienced defaults that resulted in significant losses for lenders [7]