Before we get started, this is not a recommendation or endorsement to buy any token mentioned.
As DeFi migrates away from Ethereum Mainnet to L2s, we should begin to see familiar protocols with added benefits thanks to faster transactions, lesser network fees, and interoperability among L2s. Among the few early protocols looking to establish themselves as L2-natives is Radiant Capital. Radiant is developing one of the the first omnichain money markets, meaning users can deposit on any major chain and borrow supported assets across multiple chains. Imagine depositing stETH as collateral on Ethereum Mainnet but then borrowing USDC on Arbitrum.
With Radiant, lenders provide/lend liquidity to the platform so that borrowers can withdraw the assets and pay interest. Borrowers are able to withdraw against their collateralized funds in order to obtain liquidity without selling their assets and closing their positions. Like Aave or Compound, if borrowers don’t maintain a “healthy” LTV (loan-to-value) ratio, they get liquidated.
Radiant’s cross-chain interoperability is built on Layer Zero. Currently, Radiant does support lending and borrowing on Arbitrum for DAI, WBTC, ETH and also supports borrowing USDC or USDT to other chains such as Ethereum L1, Polygon, Avalanche, and Fantom. Eventually, lenders who wish to reclaim their collateral will be able to direct which chain to withdraw funds to, and what percentage they’d like sent to each chain. With v2, Radiant has plans to support many more L2s and L1s.
Whether a user lends or borrows, they’re earning RDNT tokens in the money markets. Users