The DeFi sector has grown significantly recently, introducing fresh capabilities and drawing substantial investments. However, within the crypto community, it's widely recognized that Ethereum, the dominant network, is often unsuitable for retail users due to its high gas fees and network congestion, particularly during bull markets.
In response to these challenges, numerous alternative blockchains have emerged, competing with Ethereum by attracting users looking to escape the burden of painful gas fees. While these new blockchains offer alternatives, they have also dispersed capital across the industry, leading to a fragmented user experience in DeFi applications, characterized by isolated liquidity pools on each blockchain.
In this article, we’ll take a look at Radiant Capital, a whitelisted project here on Kassandra that delivers cross-chain lending and borrowing activities.
What is Radiant Capital?
Radiant Capital is an omnichain money market that empowers users with seamless access to lending and borrowing services across various blockchains, eliminating the need for multiple actions to complete cross-chain operations.
The project's primary goal is to consolidate the fragmented liquidity scattered across the top blockchains in the DeFi space. According to DeFiLlama, the industry boasts a staggering $42 billion of Total Value Locked (TVL), with Ethereum alone locking up more than $23.7 billion, representing 58.7% of the entire market.
How does Radiant Work?
Radiant operates on a simple yet effective principle. It revolves around two primary roles: lenders and borrowers.
- Lenders: Lenders contribute liquidity to the Radiant platform and, in exchange, earn a yield on their deposited assets. This process essentially involves users providing funds to the protocol, which are then made available for borrowing.
- Borrowers: Users seeking to borrow assets through Radiant are required to deposit collateral. This collateral secures the borrowed assets and determines the amount they can access. This approach not only ensures that borrowed assets are adequately backed but also reduces the risks associated with lending.
For now, Radiant is actively functioning on the Arbitrum and BNB Chain blockchains. However, the project has grand aspirations to extend its services to the primary layers across the blockchain industry. This expansion aims to deliver seamless cross-chain functionality, enabling users to access Radiant's services across various blockchain networks effortlessly. As a result, Radiant seeks to maximize its reach and impact within the decentralized finance landscape.
Radiant V2 emerged from a profound need for sustainability in the DeFi space. Unlike many projects that surged in popularity during the "DeFi 1.0" bull run of 2020-2021, Radiant took a different path, emphasizing long-term profitability and viability. While other projects relied on unsustainable tactics like aggressive liquidity mining, which inflated yields through constant token minting without adding substantial value, Radiant V2 aimed for lasting significance.
Key Improvements in Radiant V2:
Sustainability Focus: Radiant V2's core philosophy centers on sustainable practices that ensure the protocol's endurance and its capacity to deliver genuine value to users and the broader DeFi ecosystem.
Addressing V1 Shortcomings: Based on feedback from the Radiant community and DAO, Radiant V2 rectified several issues present in its predecessor, including:
- Unsustainable Emissions: The original protocol had unsustainable emission rates that attracted short-term "mercenary capital."
- Extended Runway: Radiant V2 extended emission schedules beyond the initial 24 months, aligning better with a long-term vision.
- Enhanced Exit Penalties: Exit penalties were refined to be more equitable, discouraging early exits without penalizing late ones.
- Flexible Token Unlock Periods: Radiant V2 introduced flexible token unlock periods, reducing unnecessary uncertainty and fear in the community.
Integration with LayerZero: One of the standout changes in V2 was its integration with LayerZero, enabling superior cross-chain capabilities. The native token RDNT migrated from an ERC-20 format to LayerZero's OFT-20 (Omnichain Fungible Token), enhancing its functionality and interoperability across blockchain networks.
The RDNT token serves as both the governance and utility token within the Radiant Capital ecosystem. It grants the community access to governance proposals and offers the opportunity to earn interest by staking with a long-term perspective.
In the transition to V2, the primary objective was to redefine how token holders engage with the platform, introducing incentives that encourage a sustained, long-term commitment.
The total supply of RDNT tokens is 1 billion tokens. The distribution is as follows:
Radiant Capital stands out as a DeFi initiative that harnessed the power of Layerzero's technology to introduce a seamless innovation: Cross-chain Lending. This innovation allows users to deposit assets into one blockchain pool and borrow from another, eliminating the cumbersome user experience that previously necessitated the use of bridges or centralized exchanges, along with multiple transactions to access assets on a specific blockchain.
For those intrigued by Radiant and wanting to be part of its development journey, it's worth noting that the RDNT token has received the Kassandra whitelist seal of approval. This means you can include it in your managed pool or explore investment opportunities where RDNT is already in play.
Always DYOR and good luck!
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