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.
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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.
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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
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@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.
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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.
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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.
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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.
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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%).
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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
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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.
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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.
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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.
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We have also created an audio-visual version of #Radiant Thread. Don't forget to turn on your 🔊to watch it!
🎶Lucention - Linda Low
https://www.epidemicsound.com/track/Vz2T8F4AkE/
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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.
https://twitter.com/adamscochran/status/1615834225676288001
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And yes, @RDNTCapital v2 is live:
https://twitter.com/RDNTCapital/status/1637281526458073090?s=20
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Here are some accounts that also discussed @RDNTCapital :
@adamscochran
@ThorHartvigsen
@blocmatesdotcom
@Slappjakke
@PackBagPoints
@ChadCaff
@PaikCapital
@BraverCrypto
@JackNiewold
@Defi_Maestro
@ArbiAlpha
@rektfoodfarmer
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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
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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!
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https://twitter.com/eli5_defi/status/1637511983263260678?s=20