TL;DR
Radiant Capital offers Layer Zero lending services on Arbitrum through the use of its omni-chain protocol. Lending services are a big deal for driving liquidity in the marketplace. Having access to non-custodial lending services is nothing new. But, having them deployed on Arbitrum certainly is. Looking at the Arbitrum ecosystem shows that network effects are steadily increasing as more users flock from other networks. As discussed in How to Earn up to 130% APR with Radiant, This is in large part due to the ease of use and low fees associated with using Radiant Capital. As the #1 lending protocol on Arbitrum, it’s time to dig deeper and see what Radiant Capital has to offer future RDNT token holders.
With over a quarter billion dollars in capital already locked up on Radiant it’s not only become the largest lending platform on Arbitrum, (Learn more about Arbitrum Altcoin Gems) it’s quickly become the third-largest project on the entire network. Superseded by only GMX’s derivatives market ($500 Million) and the infamous Uniswap decentralized exchange ($300 Million). This puts Radiant in a unique position as the first lending protocol on Arbitrum to receive these types of network effects.
This is quite the success story considering that one of the largest known lending platforms AAVE has been around considerably longer and is currently trailing behind Radiant Capital. Of course, this is all subject to change at a moment’s notice “if” someone were to remove $30 Million from Radiant and lock it on AAVE. But, for the time being, it seems like the DeFi community has unanimously chosen Radiant as the best platform for lending on Arbitrum.
It just goes to show how sensitive these rankings really are. Radiant Finance services are also available on BNB Chain, which hosts the second-largest lending pool on the network. Radiant is currently set up to launch on Ethereum by the end of the year.
What is Radiant Capital?
Radiant Capital was launched by an unknown group of developers around this time last year and is a fork of the AAVE protocol tailor-made for Arbitrum. The Radiant core technology is developed using the Layer Zero Omnichain protocol.
Layer Zero allows seamless transfers between multiple networks by relaying transaction proofs to destination chains. This is accomplished through a system of Relayers and Oracles deployed to a network’s main chain, creating verified endpoints for data transfers. This type of cross-chain communication is considered low-level since it doesn’t rely on or drain resources from the main chain.
Layer Zero is the only blockchain technology in development that allows non-custodial transactions across all networks. With Radiant Capital built on top of this foundation, they’re primed to gain access and deploy the lending protocol on any network.
In March 2023, Radiant Capital launched a Layer Zero deployer to BNB Chain. As a show of appreciation, Binance Labs invested $10 Million into Radiant Capital. These funds will be used primarily to assist Radiant in deploying to Ethereum.
Playing a big part in the move to Ethereum is the release of Radiant V2. Released a few months ago, V2 of the protocol is the culmination of six separate proposals voted on by the Radiant community.
The biggest change with this upgrade is the…
Head of Research Jesse is a passionate seeker of truth who enjoys educating others about Bitcoin. As a free thinker and 2nd amendment advocate, Jesse believes each individual has the right to monetary freedom. “The swarm is headed towards us” -Satoshi Nakamoto
