Radiant Capital is a well-known project in the Arbitrum ecosystem. So what is Radiant Capital? Today, let’s learn about this project together!

RadiantCapital is a lending platform developed based on Arbitrum and aims to become the first multi-chain currency market.

Radiant spent more than $2 million on security testing conducted by Layer Zero and Stargate. Radiant itself has been fully audited by PeckShield and Solidity Finance.

What is the problem with Radiant Capital development?

Capital in the DeFi space is currently spread across many different chains. At the same time, the combination of lending platforms and cross-chain interactions has not yet resulted in the best user experience.

Radiant is aware of this problem and has built cross-chain visualization capabilities based on Layer Zero and used the Stargate router. Through this solution, users can fully pledge assets on this chain and borrow on other chains without encountering any difficulties.

Features of Radiant Capital

Loans-Borrowings

Radiant Capital adds utility to users through a collateralized lending mechanism. Specifically, users do not have to sell their assets. Instead, they pledge their assets to borrow money and gain access to more liquidity. Borrowers are responsible for paying fees and interest. They are used to reward Radiant DAO and liquidity providers. Borrowers must ensure that the value of their collateral does not fall below the value of what they borrowed. If this happens, their assets will be liquidated.

Lending

Radiant Capital supports users to bring liquidity to the platform, which supports the lending function of the platform. Liquidity providers can receive RDNT tokens as rewards.

Borrowers will have two options for using the RDNT tokens obtained from Radiant:

Until completion: Allows the payment of RDNT tokens in installments and allows users to receive all reward tokens.

Early withdrawal: Pay a 50% penalty and receive RDNT tokens instantly.

1-Click Loop

Radiant Capital offers a 1-Click Loop feature that allows users to increase the value of their collateral by automating multiple deposit and borrowing cycles.

Loop is a form of interaction and utility between the platform and its users, where users can gain additional value by generating returns on the value of their collateral, with up to 5x leverage available.

bridging

RadiantCapital provides lending and bridging capabilities (borrowing money and moving assets across chains) through the Stargate Router Interface (Stargate Stable Router Interface).

These bridges are built on the Delta (∆) algorithm at layer zero, which allows the transfer of native assets through a unified liquidity pool.

The flexibility provided by the ∆ algorithm creates the opportunity to leverage cross-chain swaps in a single transaction to exchange native assets on different chains, thereby improving many existing applications such as decentralized lending protocols like Radiant Capital.

Radiant V1 allows depositing assets on the root chain (Arbitrum) and borrowing any asset on any EVM chain supported by Stargate Finance. Radiant V2 is under development and will allow deposits and borrowing on various chains in the near future.

Liquidation

Liquidation is a process that occurs when a borrower's health factor drops to 1 or below because the value of their collateral does not cover the true value of their loan/debt. This can be caused by a decrease in the value of their collateral or an increase in the amount owed.

To reduce the risk of liquidation, users can repay any outstanding debt or deposit additional collateral to increase their health factor.

The total liquidation penalty is 15%. Half of the penalty (7.5%) is distributed to liquidators as rewards, while the remaining 50% goes to the Radiant Growth Fund, which will enable the DAO to fund projects without selling RDNT tokens on the open market.

Radiant Network Operational Status

The Radiant Capital project has a TVL of $136.18 million, ranking third in the entire Arbitrum ecosystem. Since December 2022, the protocol's TVL has shown a strong recovery and is close to reaching its all-time high.

Liquidity provider compensation fee

Radiant platform has paid out approximately $6.18 million in rewards to users who locked up RDNT. Users can receive rewards in the following six tokens: RDNT, USDC, DAI, USDT, WETH, and WBTC.

RadiantCapital provides lending for 5 types of assets, including: ETH, WBTC and stablecoins (DAI, USDC, USDT).

Among the five cryptocurrencies, USDC and USDT are the two assets with the largest market cap, at $195.49 million and $73.28 million, respectively. In addition, USDC is the asset with the most borrowers ($136 million) compared to USDT’s $59.49 million.

Basic information of RDNT token

  • Token Name: Radiant Capital

  • Token abbreviation: RDNT

  • Blockchain: Arbitrum

  • Token Standard: ERC-20

  • Contract address: 0x0c4681e6c0235179ec3d4f4fc4df3d14fdd96017

  • Token Type: Utility, Governance

  • Total supply: 1 billion RDNT

  • Circulating Supply: 232,731,641 RDNT

Token Allocation

  • Incentives - Borrowers and Lenders: 50%

  • Encouragement - Pond 2: 20%

  • Core members and ecosystem: 7%

  • Team: 20%

  • Reserve Fund: 3%

What are RDNT tokens used for?

  • Vote on project governance decisions.

  • Reward liquidity providers.

  • Liquidity charges and interest.

  • RDNT token storage wallet

  • You can store this token on Exchange Wallet, MetaMask, Trust Wallet, Coin98 Wallet.

How to Earn and Own RDNT Tokens

Buy directly on an exchange.

Provide liquidity to earn rewards.

Where to buy and sell RDNT tokens?

Currently, RDNT is traded on many different exchanges with a total daily trading volume of approximately $10.5 million. Exchanges that list this token include: SushiSwap, Uniswap, Trader Joe, Huobi Global, Bybit, Gate.io, Kucoin, MEXC, etc.

Development Roadmap

Radiant v1

Radiant does not raise funds in the form of seed sales, private sales, or IDOs, but rather the development team and founders provide project development funds. The project was initially launched in July 2022 as a full-chain platform in the lending space. The first version of the Radiant Capital platform had issues with headhunting farming (which can be understood as an unsustainable farming practice where farming participants are not engaged and constantly look for other opportunities with higher annual interest rates), high price-to-expense ratios, and other issues were also noted.

Radiant v2

Many improvements have been introduced to the Radiant Capital platform in Radiant v2, which will be released on February 16, 2023. Version 2 will continue to support full-chain lending, and Radiant Capital is also positioned as a project that offers the most competitive price-fee ratio in the cryptocurrency world.

This v2 also includes updates to prevent headhunting farming. Governance has been improved through discussion boards and snapshot voting. In addition, the project has added new collateral that will generate additional fees for the platform.

When the ERC-20 RDNT token is converted to the LayerZero OFT (All-Chain Interchangeable Token) format, cross-chain fee sharing will be faster. The migration also paves the way for launching on more chains and allows for bridge contracts.

The RDNT lockup period has been increased from 28 days to 90 days. However, there is a linear scale for early exits based on the time remaining in the lockup period. The project has also improved automatic lockup enablement, protocol fee allocation, and RDNT emission eligibility criteria with Radiant v2.

investor

Radiant Capital does not raise funds from outside sources, but rather raises project development funds through development teams and project founders.

in conclusion

Currently Radiant Capital is the lending platform with the highest TVL on Arbitrum. In the near future, as funds continue to flow into Arbitrum looking for opportunities to receive airdrops from this second-layer solution, the project will have many development conditions.

Through this article, you must have basically mastered the basic information of the project in order to make your own investment decision. I wish you success and make huge profits from this potential market.

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