Arbitrum is one of the most attention-grabbing layer 2 ecosystems in 2023 and so projects within it also attract the attention of the community. Radiant Capital is considered the key lending platform which is expected to become an upcoming hidden gem of the ecosystem.
What is Radiant Capital?
Radiant Capital is a multi-chain lending and borrowing protocol built on the layer-2 Arbitrum that allows users to borrow and lend a variety of supported assets across multiple chains. With the goal of becoming the first omnichain money market, Radiant lets users borrow and lend assets on multiple chains thanks to cross-chain interoperability built atop Layer Zero through Stargate’s interface.
As a lending protocol, Radiant’s main product will definitely be borrow and lend.
Lenders: Lenders will provide liquidity to Radiant by locking assets in the protocol and to get interest and rewards in $RDNT. Radiant currently supports 5 types of asset: $DAI, $USDC, $USDT, $ETH and $WBTC.
Borrowers: Borrowers able to withdraw against collateralized funds in order to obtain liquidity (working capital) without selling their assets and closing their positions.
For rewarded $RDNT token, users can exit early from their vest for a 50% penalty fee, or complete the four-week (28-day) vesting period to receive the full amount.
To be different from other money market projects in the ecosystem and market, just Lend & Borrow is not enough. Radiant also offers a few outstanding features that make the project shine brighter than other projects in the same niche.
This feature enables users to increase their collateral value by automating the deposit and borrow cycle multiple times. Users can get a greater return on collateral value with up to 5x leverage.
Different from other lending protocols in the market, Radiant also provides users with an innovative borrow and bridge function via the stargate stable router interface. Now only USDC and USDT are the supported bridgeable assets.
Radiant has only been in operation since July 2022 but the project has already achieved many remarkable achievements.
Radiant, in December 2022, ranked 1st in the list of DeFi projects based on “Price to Fees”. In other words, Radiant has gained significant revenue and to date, it generated nearly $16.3 million in protocol fees and over $8 million in revenue. This makes Radiant one of the notable projects among Real Yield-based DeFi projects in 2023.
Radiant is currently the lending project with the highest TVL in the Arbitrum ecosystem, ranked 3rd in the top projects with the highest TVL, contributing most to Arbitrum’s TVL. The project will be deployed on BNB Chain in the near future, which will help attract more users and grow its TVL.
- Token Name: RADIANT Token
- Ticker: $RDNT
- Blockchain: Arbitrum.
- Token Standard: ERC-20.
- Contract: 0x0C4681e6C0235179ec3D4F4fc4DF3d14FDD96017
- Token type: Utility, Governance.
- Total Supply: 1,000,000,000 RDNT
- Circulating Supply: 224,605,546 RDNT
- Incentives – Suppliers and Borrowers: 50%
- Incentives – Pool 2: 20%
- Team: 20%
- Core contributors and Ecosystem: 7%
- Treasury : 3%
- The community can vote on important measures using locked RDNT
- Participate in DeFi activities on platforms like Stake, Vest and Lock
- By interacting and providing utility to the platform, users can capture the added value from the communities’ engagement through the native utility token $RDNT from borrowers and platform fees.
Although Radiant’s V1 still has some disadvantages, its V2 is expected to address all these issues like unsustainable initial emissions, insufficient runway, a low incentive to provide on-chain liquidity to the protocol, and fixed unlock times. V2 will be an important stepping stone for Radiant to grow stronger in TVL as well as market cap in the future.
Radiant is also the lending protocol with the largest TVL in the Arbitrum ecosystem, so after $GMX, $MAGIC, $RDNT will most likely be listed on major exchanges like Binance.