Radiant: Pioneering a New Era of Full-Chain Lending

Radiant (RDNT) has been revolutionizing the cross-chain finance sector since its launch in July 2022 as a native lending market project on Arbitrum.

The Uniqueness of Radiant

Although Radiant is similar to other money markets in terms of basic functions, its core advantage lies in creating a full-chain lending ecosystem. Users can seamlessly perform cross-chain lending operations between different blockchains supported by Radiant.

Imagine being able to deposit ETH or GMX on Arbitrum, and then directly borrow BNB on BSC, borrow SOL on Solana, or borrow OP on Optimism. All of this can be done without the cumbersome asset cross-chain transfers, greatly simplifying the user operation process.

In contrast, traditional lending protocols often require the deployment of independent versions on different chains, leading to fragmented liquidity. Radiant's all-chain currency market concept aims to integrate liquidity across chains and enhance asset utilization efficiency. According to the latest data, Ethereum L1 still accounts for about 60% of the TVL, while lending markets on other chains remain relatively independent. Radiant seeks to build cross-chain interoperability through LayerZero's Omnichain technology to address this liquidity dispersion issue.

RDNT V2: Incentivizing Long-Term Value Creation

The upcoming V2 version of Radiant is highly anticipated, featuring the following highlights:

1. Introduce a dynamic liquidity provision (dLP) mechanism: Users must provide at least 5% liquidity to earn RDNT issuance rewards, balancing the long-term interests of contributors and the protocol.

2. Upgrade RDNT to LayerZero Omnichain token: Achieve a seamless cross-chain experience and prepare for future integration of more chains.

3. Optimize the early exit mechanism: extend the vesting period to 90 days and adopt a linear reduction model to more reasonably balance penalties and flexibility.

4. Adjust incentive distribution: Only locked RDNT can receive protocol fee sharing, encouraging long-term holding.

5. Redesign the protocol fee distribution: 60% to RDNT stakers, 25% to lenders, and 15% to DAO, reinforcing the value proposition of RDNT staking.

Market Performance of Radiant

As of the latest data:

• The overall lending market size is approximately $438 million.
• A total of $5.62 million in protocol fees allocated to RDNT stakers.
• The total value locked (TVL) of deposited assets reached 126 million USD, with the overall TVL (including lending, staking, and Pool2) approximately 470 million USD.

These data indicate that Radiant has taken a leading position in the Arbitrum lending market. If the vision of cross-chain lending is successfully realized in the future, it is expected to further expand market share.

However, investors still need to carefully assess potential risks. In addition to Radiant's own risks, its dependence on the LayerZero protocol is also a factor to consider. In the rapidly evolving DeFi space, risk management is always key.