Radiant: A New Exploration in Cross-Chain Lending

Radiant (RDNT) is an innovative lending market project that officially launched on the Arbitrum network in July 2022. Its uniqueness lies in its commitment to building a full-chain monetary market, which significantly distinguishes it from traditional lending platforms.

Advantages of Full-Chain Lending

The core feature of Radiant is to support users in seamless lending and borrowing across different blockchains. For example, users can deposit ETH or GMX on Arbitrum and then borrow different assets on other supported chains, such as borrowing BNB on BSC, borrowing SOL on Solana, or borrowing OP on Optimism. In this process, users do not need to carry out cumbersome cross-chain asset operations, significantly simplifying the lending and borrowing process.

In contrast, most of the lending protocols currently on the market are independently deployed on various chains or Layer 2, leading to fragmented liquidity. Users need to first perform asset 跨链 in order to operate across different networks. Radiant's full-chain currency market model aims to integrate liquidity across different chains, improve asset utilization, and provide users with a more convenient operating experience.

From a technical perspective, Radiant has achieved its cross-chain interoperability through LayerZero's Omnichain technology. This innovative solution holds the potential to address the issue of liquidity fragmentation between different chains, paving the way for the construction of a truly comprehensive lending market.

RDNT V2: Optimized Governance Model

Radiant plans to launch the RDNT V2 version soon, introducing several important updates:

1. Dynamic Liquidity Provision (dLP): Users need to provide at least 5% of dynamic liquidity to qualify for RDNT inflation incentives, aimed at enhancing the demand and liquidity of RDNT.

2. Cross-chain token upgrade: Upgrading the RDNT token to the LayerZero Omnichain Fungible format for a smoother cross-chain experience.

3. Linear exit mechanism: The vesting period is extended to 90 days, with early exit adopting a linear reduction model, making the penalty mechanism more reasonable.

4. Incentive Mechanism Adjustment: Only locked RDNT can receive protocol fee sharing, and expired locks will no longer receive incentives.

5. Protocol fee allocation optimization: 60% allocated to RDNT stakers, 25% to lenders, and 15% distributed to the DAO to promote the long-term development of the ecosystem.

Project Status

As of the latest data, Radiant's lending market size has reached approximately $438 million. The total fees allocated to RDNT stakers has reached $5.62 million. According to DeFiLlama, Radiant's total value locked (TVL) is approximately $470 million, with pure deposit asset TVL of $126 million.

These data indicate that Radiant has taken a leading position in the Arbitrum lending market. If its cross-chain lending strategy is successfully implemented, it is expected to further expand the market size.

However, investors should be aware that there are always potential risks in the DeFi space. In addition to the challenges that Radiant itself may face, its reliance on LayerZero technology may also introduce additional risks. Therefore, participants should exercise caution and conduct thorough risk assessments when using the platform.