RDNT will be launched in the Binance Innovation Zone in one hour. Let’s introduce the new project from four aspects. How to break the liquidity gap? How to control pricing power? What about the flywheel effect? How to rely on ARB to fully capture the dividends during the explosive period of L2 asset interaction?
①Project introduction
RDNT is a full-chain money market focusing on lending. Launched in July 2022, Radiant is a native lending market project on Arbitrum. It is based on LayerZero's underlying cross-chain protocol and improves the efficiency of DeFi asset utilization through full-chain and cross-chain lending. Currently, RDNT is the absolute leader in Arbitrum lending, and many OGs regard it as AAVE's most powerful competitor.
② Break the liquidity gap and compete directly with AAVE
Radiant users can cross-chain borrow and lend on different chains it supports. Users can pledge assets on one chain and borrow assets on another chain without performing cross-chain operations on assets; there are many DeFi lending protocols in the current market (such as AAVE) assets between various chains cannot endorse each other, resulting in liquidity fragmentation and limited asset utilization; RDNT's full-chain currency market built through LayerZero technology can well solve the dilemma of liquidity fragmentation between different public chains/L2.
③ Master liquidity = gain pricing power, real income drives flywheel effect
RDNT has completed the migration to the V2 version in March. It incentivizes borrowers and lenders through "dynamic liquidity provision", that is, the prerequisite for obtaining additional mining issuance rewards is dynamically adjusted according to the liquidity provision ratio, which can lock a certain amount of RDNT in the market. At the same time, it can also improve the liquidity of the protocol and achieve the long-term development of LP and the protocol; in the V2 economic model, 60% of the fees are allocated to RDNT lockers and 25% to lenders, which is expected to form an "increase in protocol fees → accumulation of real income" → More users pledge RDNT → Market supply decreases → Lock-up amount increases” flywheel effect.
④The profit level is close to AAVE, with a high risk-return ratio
The current profit level of RDNT is close to that of AAVE. Its TVL exceeds US$150 million and continues to rise. Its circulating market value of US$34 million still has greater room for development compared to AAVE ($1 billion) and COMP ($314 million); more in the future Relying on the development of ARB, the vigorous development of L2 has also derived indispensable asset cross-chain interaction needs. RDNT, as the top L2 head DeFi protocol, can better leverage the industry leverage of emerging public chains and L2.
