Radiant Capital

Radiant Capital operates as a decentralized, omnichain money market protocol, positioning itself to address liquidity fragmentation within the decentralized finance (DeFi) space. Founded in 2022 by George Macallan, who has a background in other DeFi projects, the protocol was established to function as a cross-chain lending and borrowing platform. The project notably bootstrapped its initial operations without venture capital, with team members self-funding operating costs. A significant milestone was the launch of Radiant V2 on January 15, 2023, which overhauled the protocol's tokenomics and infrastructure to improve capital efficiency and sustainability. This version transitioned the native utility token, RDNT, to LayerZero's Omnichain Fungible Token (OFT) standard, facilitating seamless cross-chain transfers. In July 2023, Radiant secured $10 million in an early-stage venture capital round with investors including Binance Labs.

The protocol's business model centers on creating a unified market where users can deposit major assets on one blockchain and borrow different assets across multiple chains, including Arbitrum, BNB Chain, Ethereum, and Base. This is achieved by leveraging LayerZero's interoperability protocol and Stargate's stable router interface, which allows for instant-guaranteed finality on cross-chain transactions. Revenue is generated from fees on borrowing activities and flash loans. These fees are distributed to users who provide utility to the platform, specifically Dynamic Liquidity Providers (dLPs) who lock RDNT tokens. This dLP mechanism is designed to align user incentives with the long-term health of the protocol by requiring a minimum of 5% of their total deposit value to be locked as dLP to receive RDNT emissions.

Radiant serves a diverse client base, primarily individual crypto investors and active traders seeking to earn yield on their digital assets or gain access to liquidity through collateralized loans without intermediaries. The platform supports a variety of assets, from stablecoins like USDC and USDT to major cryptocurrencies such as WBTC and ETH, and liquid staking derivatives. Users who deposit assets receive interest-bearing rTokens, which represent their underlying collateral and the interest earned. For security, the protocol has undergone multiple audits from firms including PeckShield, Zokyo, Blocksec, and OpenZeppelin and maintains a bug bounty program. Despite these measures, the protocol experienced a significant setback with a major security exploit in late 2024, which substantially impacted its total value locked (TVL). The Radiant DAO is now focused on rebuilding and advancing its roadmap, which includes expanding to more chains and introducing features like cross-chain liquidations.

Keywords: omnichain money market, cross-chain lending, decentralized finance, DeFi protocol, Radiant Capital, RDNT token, LayerZero, dynamic liquidity provisioning, dLP, crypto borrowing, yield farming, Arbitrum, BNB Chain, blockchain interoperability, asset collateralization, Stargate, liquidity pools, flash loans, crypto lending, decentralized governance, tokenomics