The Arbitrum ecosystem is gaining popularity as more and more high-quality projects emerge. Particularly DeFi-related initiatives. Radiant Capital (RDNT) is a recent moniker that has gained prominence.
Several DeFi systems now in operation only provide borrowing and lending services on a single chain, resulting in capital fragmentation. Radiant Capital’s ability to solve the demand for a cross-chain DeFi platform while also providing a real dividend keeps the project on track.
What is Radiant Capital?
Radiant Capital is an Arbitrum-based lending protocol platform. This project intends to grow into a cross-chain lending platform, enabling users to engage with different blockchains while borrowing and lending on the same platform.
Radiant’s founding founders and developers fully financed the project’s development. There was no venture capital money utilized. Since the platform’s first debut in July 2022, the team has received considerable input on how to enhance the user experience for both borrowing and lending. In order to provide the greatest omnichain platform possible, the team began creating Radiant v2 with exciting new features and capabilities.
Radiant Capital has performed audits with Solidity Finance and PeckShield with success.
The project has altered how users may borrow assets and earn money by giving funds for lending reasons. It particularly works across most major blockchains rather than just one. This community-run platform generates a genuine return via protocol fees and associated activities.
Prior to the debut of Radiant Capital, most crypto lending platforms forced crypto lenders to choose a certain chain to operate on, and they could only use that network’s token.
Lenders supply Radiant with liquidity so that it may generate passive income from the assets it deposits. Investors may deposit assets and earn a return by locking, vesting, and lending more assets via the platform. Other users may utilize their assets as collateral to borrow money and increase their liquidity.
Radiant additionally supports cross-chain compatibility due to being built on LayerZero through Stargate’s interface. This enables lenders to withdraw monies from whatever chain they want.
Special highlights
- Radiant is based on Layer 0, and the V1 version makes use of Stargate’s reliable router interface. As a consequence, lenders may remove their collateral from one chain and quickly transfer it to another.
- Trade Fees: Because of the Arbitrum advantage, Radiant Capital’s trading expenses are reduced to a minimum. Not only that, but this project inherits Ethereum’s security characteristics. Radiant Capital is well acclaimed for allowing consumers the ability to generate a profit while keeping the high security of your system.
- Improved user experience: Radiant eliminates the middlemen from trading assets, futures contracts, and savings accounts. Deliver the finest possible user experience.
- Radiant focuses on protecting fundamental services from vulnerabilities. Moreover, the project spent more than $2 million on security testing by Layer Zero and Stargate. Solidity Finance also audited the project, which was followed by a second audit by Peckshield.
It will assist Radiant Capital in converting the existing ERC-20 RDNT tokens to the LayerZero OFT (Omnichain Fungible Token) format, making cross-chain fee sharing more frictionless and enabling speedier launch on more chains with the V2 version.
The team also said that it would be deployed on BNB Chain shortly. Version V2 also supports additional material and features. Beginning with V2, only users that provide liquidity to the protocol may earn RDNT. Users may convert their assets from V1 to V2 utilizing the Radiant migration tool.
How does it work?
Radiant Capital’s cross-chain operation takes advantage of Stargate’s robust router interface.
Smart contracts, rather than intermediaries, are utilized for transactions, as is the case with all DeFi products, reducing costs and increasing processing speed.
Radiant Capital enables its users to deposit assets from major blockchains and lend those assets to other users without the need for an intermediary. Individuals who donate money to the site might get a good return. In addition, locks and borrowing fees produce cash. The platform also provides automatic deposits through its 1-Click Loop.
Features
Borrowing
Radiant Capital provides value to consumers through a collateralized lending method. Users, in particular, are not required to sell their assets. Instead, they mortgage their assets in order to borrow money and increase their liquidity. Fees and interest are the responsibility of the borrower. Radiant DAOs and liquidity providers are rewarded with them. Borrowers must guarantee that the value of their collateral does not fall below the amount borrowed. Their assets will be liquidated if this occurs.
Lending
Radiant Capital provides assistance to users who provide liquidity to the marketplace. This liquidity helps the platform’s borrowing function. Liquidity contributors may obtain extra value by engaging on the platform in this manner in return for an RDNT yield. When a lender desires to withdraw their collateral, they may designate which chains and at what allocation to deliver the assets.
With the RDNT from Radiant, the lender will have two options:
- Vest till completion: Enables the RDNT to be paid in installments while still providing the user with the full number of bonus tokens.
- Exit early: Get RDNT tokens instantly by paying a 50% penalty.
1-Click Loop
Radiant Capital provides a 1-Click Loop feature that enables customers to maximize the value of their collateral by automating several deposit and lending cycles.
Numerous customers gradually put additional assets into the site. The Radiant Capital 1-Click Loop makes it easier for consumers to build liquidity over time. Instead of manually contributing to their contributed money, individuals may automate deposits to work toward their objectives. Users may increase their yield by giving to the community in this manner.
The looping function enables you to automatically repeat the mortgage and borrowing procedure with up to 5x leverage.
Bridge
Radiant Capital offers consumers borrow and bridge capability through stargate router delivery.
Bridges based on Layer Zero’s Delta (∆) algorithm enable original assets to be transferred across unified liquidity pools.
Because of the ∆ algorithm’s versatility, it is possible to enhance many current applications, such as decentralized lending protocols like Radiant Capital, by using single transactions. The original object is single-transaction cross-chain swapping.
Radiant V1 lets you deposit assets on the root chain (Arbitrum) and borrow assets from any EVM chain supported by Stargate Finance. Radiant V2 supports depositing and borrowing on a variety of chains.
Liquidation
Radiant Capital employs a liquidation procedure to guarantee that the debt of a borrower never falls below the value of the collateral. This often occurs when the value of a collateralized asset falls. It may also occur if the borrower’s loan amount increases. A user may repay some borrowed monies to prevent liquidation.
When a borrower’s Health Factor falls to 1 or below because the value of their collateral does not cover the full amount of their loan/debt, they are liquidated. This might happen if the collateral’s value falls or the amount outstanding rises.
Users may lower the danger of liquidation by repaying any existing debt or depositing more collateral to boost their Health Factor. Additional health considerations.
The overall penalty for liquidation is 15%. The liquidators will get half of the penalties (7.5%), while the remaining 50% will go to the Radiant Growth Fund, which will enable the DAO to finance projects without having to sell RDNT tokens on the open market.
Locking and vesting
Investors in Radiant Capital may profit by locking and vesting their RDNT tokens. By lending these assets, the locked tokens may earn an additional revenue stream.
To qualify for RDNT, users must lock at least 5% of their RDNT. The vesting term was recently increased from 28 to 90 days. Nevertheless, it is designed with a sliding charge scale for early departures, with customers receiving 10% to 75% of total emissions. This scale takes into consideration the amount of time left in the vesting period.
RDNT token
Key Metrics
- Token Name: Radiant Token
- Ticker: RDNT
- Blockchain: Arbitrum
- Token Contract: 0x0C4681e6C0235179ec3D4F4fc4DF3d14FDD96017
- Token Type: Utility
- Total Supply: 1,000,000,000 RDNT
- Max Supply: 1,000,000,000 RDNT
Token Allocation
- Incentives – Supply and Borrowers: 54%
- Incentives – Pool 2 (DAO Reverse): 14%
- Team: 20%
- Core Contributors and Ecosystem: 7%
- Treasury & LP: 3%
Release Schedule
Roadmap
Radiant V2 was released in Q1 2023 with numerous novel features to support the Omnichain goal and become the biggest lending protocol on Arbitrum. Specific features are as follows:
- Cross-chain lending/lending for BTC, ETH, and USDC is possible.
- Modify the early withdrawal penalty.
- Introducing the Dynamic Liquidity Pool and modifying the RDNT rewards
- The time for prize vesting has been changed (previously 28 days)
- Launching Island Game, enabling bots to liquidate the positions of other participants.
Core team
The images of the project’s participants have not yet been made public. Nonetheless, below is a list of the. names of the main members:
- George, Tom, Aaron, Liam, and Roger are the core team members.
- Khanh, Steve, Daniel, and Roy are the developers.
Investors and partners
The project is entirely run on personal funds. As a result, there is no Private Sale, IDO, or Venture Capital involvement in the project (VC).
Radiant has long-standing partnerships with LayerZero Labs and Chainlink. Offchain Labs has also chosen the project to be included on the Arbitrum official webpage.
Conclusion
Radiant Capital is now the loan platform with the greatest TVL on Arbitrum. This project will have numerous opportunities for growth in the near future as money continues to come to Arbitrum after the possibility of getting the airdrop from this Layer 2 solution.
Radiant is making tremendous progress in the process, with the objective of delivering broad and easy financial services to customers through the Radiant Wallet application, an experienced development staff, and big partners such as LayerZero. Product creation. Radiant’s roadmap includes major aspects such as DeFi and cross-platform functionality. Radiant Capital, like any other blockchain startup, has several hurdles and dangers, and careful consideration before investing is required.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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