Radiant Capital v2

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If you have a strong interest in the @Arbitrum ecosystem, then you are likely familiar with @RDNTCapital and their v2 release. We are excited to provide an informative #visualthread to help you gain a comprehensive understanding of this groundbreaking update. /1

Before we move forward, please note that this thread merely aims to share our understanding of the topic and should not be taken as financial advice. Disclosure: This post is under a partnership with the @RDNTCapital team. /2

In this visual thread we will cover as follows: - Radiant Capital v1 - The Liquidity Mercenary - Radiant Capital v2 - What is dLP? - Vesting & Zapping - dLP Flywheel - Bounty Hunters - Collateral Expansions - Radiant v2 Sustainability /3

@RDNTCapital v1 paved the way for the first secure and efficient omnichain money market on Arbitrum. With v2, it will bring fragmented liquidity across multiple money markets and chains together. /4

Radiant v1 rewards participants with $RDNT to capture economic value. This delays sell pressure but doesn't fully mitigate Liquidity Mercenaries which only seeks quick reward turnover. /5

Radiant Capital v2 expands the protocol to other chains (starting with BNB Chain) and updates $RDNT emission structure with Dynamic Liquidity Provisioning (dLP) to foster growth and better align network participants while ensuring protocol's resiliency. /6

Dynamic Liquidity Provisioning (dLP) is a new DeFi concept to reward users who add value to the protocol and discourage liquidity mercenaries. Users must lock 5% of LP tokens (in USD value) relative to their deposits to encourage sustainable value capture. /7

Zapping is a way to participate in dLP by adding LP tokens to a pool with a variable lock-in period (1 month - 1 year). Zappers earn platform fees that can be redeemed immediately, but $RDNT token vesting takes 90 days and early exits may incur a penalty (10-75%). /8

The dLP mechanism increases demand for dLP tokens, boosting emissions yield. If market cap drops, APR increases for eligible participants, incentivizing farmers. It aligns participants and the protocol long-term, removing incentives to short /9

Radiant Capital's dLP mechanism in v2 requires users to maintain a 5% dLP threshold to receive emissions. Those who fall below the threshold can be removed through a bounty mechanism, promoting decentralization and solving the problem without transaction spam. /10

Radiant v2 governance allows voting for new collateral assets to be added to the protocol. A Risk Committee will decide appropriate borrowing parameters. This will increase cross-chain borrowing power and fee generation. /11

Radiant Capital v2 is expanding to @BNBCHAIN for higher revenues with an omnichain approach. The dLP mechanism will be active during the migration and the emissions schedule will extend to 5 years minimum to support the protocol's growth. /12

We have also created an audio-visual version of #Radiant Thread. Don't forget to turn on your 🔊to watch it! 🎶Lucention - Linda Low epidemicsound.com/track/Vz2T8F4AkE/ /13

Based on the above points, it's clear why there's positive outlook on @RDNTCapital v2. Additionally, many influential DeFi analyst showing bullishness towards the project, and the team has significant technical capabilities to support its growth. twitter.com/adamscochran/status/1615834225676288001 /14

And yes, @RDNTCapital v2 is live: twitter.com/RDNTCapital/status/1637281526458073090?s=20 /15

Here are some accounts that also discussed @RDNTCapital : @adamscochran @ThorHartvigsen @blocmatesdotcom @Slappjakke @PackBagPoints @ChadCaff @PaikCapital @BraverCrypto @JackNiewold @Defi_Maestro @ArbiAlpha @rektfoodfarmer /16

Tagged also my fellow DeFi thread creator @LouisCooper_ @rektdiomedes @JiraiyaReal @crypto_linn @defi_mochi @RiddlerDeFi @SimplifyDeFi @Cryptotrissy @jake_pahor @Only1temmy @Louround_ @2lambro @DeFiMinty @DefiIgnas @launchy_ @archipelabro /17

If you're finding our thread on @RDNTCapital interesting, please show your support by liking, sharing, and following us. Feel free to leave a comment with your thoughts, and we'd be more than happy to engage in further discussion! /18 twitter.com/eli5_defi/status/1637511983263260678?s=20