Radiant Capital (RDNT): Borrow & Lend Across Chains With Ease

Until recently, crypto projects have generally not operated with a profit. In fact, most of them were previously not structured with a realistic way to generate revenue. While this was once commonplace, the new trend in the decentralized finance (DeFi) space is to create real and sustainable yields and produce tokens with real-world utility. However, many DeFi platforms operating today only offer borrowing and lending activities on a single chain, resulting in capital fragmentation. Radiant Capital addresses the need for a cross-chain DeFi platform while also generating a true yield.

What Is Radiant Capital?

Radiant Capital is an omnichain lending platform that allows users to generate borrowing interest for lending and borrow assets across multiple chains seamlessly. As the first omnichain money market, it simplifies both the borrowing and lending experiences.

Prior to the launch of Radiant Capital, most crypto lending platforms required crypto lenders to select a specific chain to work on, and they were limited to using that chain’s specific token. Radiant Capital has changed the way users can borrow assets and generate a return by contributing their capital for lending purposes. Specifically, Radiant Capital functions across most major blockchains rather than on just one blockchain. This community-operated platform also produces a real yield through its protocol fees and related activities. Investors are able to deposit their assets, and they receive a return for locking, vesting and lending their additional assets via the platform. Other users can use their assets as collateral to boost their liquidity through a borrowing mechanism.

History of Radiant Capital

The initial founders and developers of Radiant Capital completely funded the project's development. No venture capital funding was used. The platform was originally launched in July 2022, and since then, the team has received extensive feedback for opportunities to improve the user experience for both borrowing and lending. In an effort to deliver the best omnichain platform possible, the team started developing Radiant v2 with exciting updates to its features and functionality. 

The Radiant DAO has more than a dozen core members, and it will continue to identify areas to improve on. Security has been a top priority, and Radiant Capital has successfully completed audits with both Solidity Finance and PeckShield.

What Does Radiant Capital Aim to Achieve?

Radiant Capital’s core development team initially identified the significant challenges with borrowing and lending related to the fractured placement of capital across numerous platforms, and they developed their platform specifically to address these challenges. In fact, according to DefiLlama’s report, more than $22 billion in assets is currently fragmented across the top 10 layers. 

Radiant Capital's main aim is to consolidate this fragmented liquidity and provide a faster and more seamless experience for borrowing and lending. At the same time, this secure, decentralized platform provides users with a safe way to earn a competitive yield on their assets. Its developers have focused on making Radiant Capital the most profitable option in the crypto space today.

How Does Radiant Capital Work?

Radiant Capital’s cross-chain operation uses the stable router interface of Stargate. The platform is built on Layer Zero. As is true with all DeFi products, smart contracts rather than middlemen are used for transactions, and this minimizes costs and improves processing speed. Radiant Capital allows its users to deposit their assets from major blockchains and for other users to borrow those assets without the use of a middleman. Those who contribute funds to the platform can generate an attractive yield. In addition, revenue is generated by Radiant Capital from locks and loan fees. Radiant Capital also offers automated deposits through the 1-Click Loop.

Features of Radiant Capital

While there are other borrowing and lending platforms in the crypto world, Radiant Capital has the distinction of being the first omnichain money market. At the same time, it is designed to produce a real yield through several revenue-generation mechanisms. To fully understand the appeal of Radiant Capital, let’s take a closer look at its features.

Borrowing

Radiant Capital adds utility to users through its borrowing mechanism. Specifically, users do not have to sell their assets in order to make crypto moves. Instead, they can borrow against their assets to obtain additional liquidity. Borrowers are responsible for paying loan fees and interest. These are used to compensate the Radiant DAO and liquidity providers. Borrowers must ensure that the value of their collateral does not fall below the amount of their borrowed assets. If this happens, liquidation may occur.

1-Click Loop

Source: Radiant Capital

Many users tend to deposit more assets into the platform progressively. The Radiant Capital 1-Click Loop offers users a simpler way to add liquidity over time. Rather than manually adding to their contributed capital, users can automate their deposits to work toward achieving their goals steadily. By contributing to the community in this way, users can also generate a higher yield. With up to five times leverage, the yield earned can increase significantly.

Liquidation

Radiant Capital uses a liquidation process to ensure that a borrower’s debt never falls below the value of their collateral. Often, this happens when the value of a collateralized asset drops. It can also happen if the borrower’s debt balance rises. To avoid liquidation, a user can return some borrowed funds. Another option is to deposit additional funds. Users can keep track of their risk level through their Health Factor, which is automatically calculated for the user’s convenience.

Lending

Radiant Capital supports users who bring liquidity to the platform. This liquidity supports the borrowing function of the platform. In exchange for participating on the platform in this way, liquidity contributors are able to gain additional value through an RDNT yield. When a lender wishes to withdraw their collateral, they can specify which chains to send the assets to and at what allocation.

Vesting & Locking

Radiant Capital investors can draw revenue from both locking and vesting their RDNT tokens. The locked tokens are also eligible for a secondary stream of income by lending these assets as well. The ability to compound profits makes Radiant Capital a lucrative option for crypto investors. Users must lock at least 5% of their RDNT to qualify to earn RDNT. The vesting period has recently been bumped up from 28 days to 90 days. However, it is structured with a declining fee scale for early exits where users can receive between 10% to 75% of all emissions. This scale takes into account the time remaining in the vesting period.

Radiant Capital Road Map

While many crypto projects receive a considerable amount of venture capital funding, this has not been the case with Radiant Capital. This project has been entirely funded by its development team and founders. The project initially launched in July 2022 and immediately stood out as the first omnichain platform in the lending and borrowing space. While the first version of the Radiant Capital platform gained quick recognition for its utility, some of its users stated that the platform needed to be simplified in some areas. Issues with mercenary farming, a high price-to-fee ratio and others had been noted as well. As such, the development team has been working hard over the last several months to address these changes with Radiant v2.

Radiant v2

Numerous improvements to the Radiant Capital platform are introduced in Radiant v2, which went live on Feb 16, 2023. Version 2 will continue to support omnichain lending, but Radiant Capital is now positioned to offer the most competitive price-to-fee ratio in the crypto world.

The version also has updates to prevent problematic mercenary farming. Governance is improved by Snapshot voting and discussion boards. In addition, there are now almost two dozen new collateral options that will generate additional fees for the platform. 

Cross-chain fee sharing will be faster with the migration of the ERC-20 RDNT token to a LayerZero OFT (Omnichain Fungible Token) format. The migration will also make way for quicker launches on more chains and allow native ownership of bridging contracts.

The vesting period has increased from 28 days to 90 days. However, there is a linear scale for an early exit based on the time remaining in the vesting period. There have also been improvements to auto-locking enablement, the allocation of protocol fees and the eligibility standard for RDNT emissions with Radiant v2.

RDNT Tokenomics

Source: Radiant Capital

RDNT is the native token of Radiant Capital. It is used for borrowing interest charges, early exit penalties and RDNT emissions. Thus far, as of Feb 20, 2023, close to $5.27 million has been paid to lockers in the form of RDNT. Initially, RDNT emissions occurred over a two-year period, and this has been extended to five years to promote the platform’s long-term viability. The current circulating supply of RDNT is slightly more than 208 million, and the total supply is 1 billion tokens. 

Half of the tokens are emitted as participation incentives for borrowers and liquidity suppliers. Another 20% is allocated as incentives to Pool 2 liquidity providers. An additional 20% goes to the team, and the remainder is reserved for advisors and core contributors.

RDNT Price Prediction

Given the growth of this platform over a short period of time since its launch and the many improvements that will be made with the introduction of Radiant v2, some analysts are predicting the value of RDNT to increase significantly in the years to come. The current price of RDNT is $0.2759 (as of Feb 20, 2023). The fundamentals of Radiant Capital are solid, but PricePrediction suggests that this may be a better investment for those interested in a long position. By the end of 2023, the average price predicted for RDNT is $0.27. This increases to $0.41 in 2024 and $0.61 in 2025. The predicted price continues to grow with $0.91 projected for 2026 and $1.33 for 2027. Looking further ahead, the RDNT value may reach up to $4.86 in 2030 and $10.45 in 2032.

Where to Buy RDNT

RDNT tokens can currently be purchased through Bybit. As the leading cryptocurrency trading platform in use today, Bybit offers an extensive range of pairs with fast execution and other perks. In order to trade RDNT, simply sign up for a Bybit account and navigate to the RDNT/USDT Spot Trading page.  

Is RDNT a Good Investment?

Radiant Capital is less than a year old, and it is still fine-tuning its features and functions. However, it is already a standout as the first omnichain platform of its kind. It has already been well-adopted by investors and borrowers alike, and its popularity continues to grow. Because of the short-term volatility associated with cryptocurrencies in general and the fact that Radiant Capital is still a young platform, RDNT may be a risky short-term investment. However, experts believe that the RDNT value will progressively trend upward year after year. With this in mind, a long-term hold may prove to be lucrative. Of course, as usual, it is imperative that you do your own research before investing.

Closing Thoughts

As an omnichain borrowing and lending platform, Radiant Capital fills a space in the crypto world. At the same time, it enhances the utility of assets for borrowers and offers several reward mechanisms for investors. With exciting improvements introduced in Radiant v2, it makes sense to explore all that Radiant Capital offers soon.

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