SPICE is a decentralized underwriting protocol designed to support onchain lending and real-world asset (RWA) credit markets. Real-world assets refer to off-chain financial agreements, such as private credit deals, that are represented or managed using blockchain systems. According to its website, SPICE provides an automated underwriting layer, meaning it uses predefined rules encoded in smart contracts to assess and secure lending positions directly on blockchain networks, rather than relying on manual approval processes. The protocol introduces programmable principal protection, designed to help participants define how much of their original investment is protected in the event of a default. It also uses decentralized credit default swap mechanisms, tools designed to help offset losses if borrowers fail to repay. Together, these components are intended to reduce counterparty risk, the risk that one party in a financial agreement does not meet its obligations, within decentralized fin...