Radiant: A New Attempt to Build a Full-Chain Currency Market

Radiant was launched on Arbitrum in July 2022 as a native lending market project. Unlike traditional lending protocols, Radiant is committed to creating an all-chain currency market, allowing users to conduct cross-chain lending operations across supported blockchain networks.

This innovative model allows users to complete lending on multiple networks without needing to cross-chain their assets. For example, users can deposit ETH or other tokens on Arbitrum, and then directly borrow BNB on BSC or SOL on Solana, without transferring assets to these chains. This greatly simplifies the user operation process and improves asset utilization efficiency.

In contrast, most lending protocols are currently deployed as different versions independently on various chains, resulting in fragmented liquidity among them. Users who wish to operate across different chains typically need to conduct cross-chain asset transfers first, which increases operational complexity.

From a technical perspective, Radiant achieves cross-chain interoperability through LayerZero's Omnichain technology. The essence of this all-chain lending market is to integrate liquidity across different chains, enhancing the overall asset utilization rate. According to data, the TVL of the Ethereum mainnet accounts for about 60%, with the remainder distributed across various other chains. Radiant's solution is expected to break this liquidity fragmentation.

In order to further optimize the operation of the protocol, Radiant plans to launch version V2, which includes the following changes:

1. Introduce the concept of dynamic liquidity provision (dLP), requiring users to provide at least 5% liquidity to earn RDNT token incentives.

2. Upgrade the RDNT coin to LayerZero Omnichain Fungible format for cross-chain operations.

3. Extend the token vesting period to 90 days and implement a linear model for early exit penalties.

4. Adjust the distribution ratio of protocol fees to increase the share of earnings for RDNT stakers.

5. Only RDNT in locked status can earn protocol fee sharing.

These changes are aimed at incentivizing long-term contributors, increasing the demand for RDNT coin, and enhancing the sustainability of the protocol.

Currently, the lending market size of Radiant on Arbitrum has reached approximately $438 million, with a total of $5.62 million in protocol fees allocated to RDNT stakers. The overall TVL (including lending, staking, and Pool2) is about $470 million. These figures indicate that Radiant has established a leading position in the Arbitrum lending market.

However, investors still need to be aware of potential risks. In addition to the risks that may exist within Radiant itself, its reliance on LayerZero technology means that any issues with LayerZero could also impact Radiant.

Overall, Radiant is attempting to address the long-standing issue of liquidity fragmentation in the DeFi space through its innovative full-chain lending model. If successful, it is expected to bring a more efficient capital utilization method to the entire cryptocurrency ecosystem.