Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
Part of my routine as a DeFi investor is to constantly keep a pulse on all the available yields to earn on-chain. Each week, I review the best DeFi yields available for blue chip tokens such as ETH, BTC, ARB, and stablecoins.
During the last 12 months, some of the most sustainable yields have come from Radiant Capital, the first omnichain money market built on LayerZero. Radiant looks like any other money market such as Aave but it remains the most liquid lending and borrowing app on Arbitrum with impressive $720M in total assets deposited across Ethereum, BNB Chain, and Arbitrum.
Previously in Wealth Mastery, we have covered the very clever design choice behind the Radiant liquidity mining program, which requires lenders and borrowers to provide liquidity to a 80/20 RDNT/ETH LP on Balancer, where there is a minimum 5% ratio between your total deposit value and LP value to earn RDNT emissions.
These LPs lock up their liquidity for up to 12 months, which qualifies them for more RDNT rewards. In each lending/borrowing market, the RDNT emissions are rewarded proportionally based on a combination of how much liquidity is lent/borrowed and how long their RDNT/ETH LP is locked.
However, this Dynamic Liquidity Provision (dLP) presents a hurdle in terms of complexity and capital to unlock the highest available RDNT rewards on Radiant. As a result, the team behind Magpie launched Radpie, a subDAO designed to optimize yield and provide efficient governance services for Radiant Capital users.
The platform is strategically built to maximize returns on Radiant by securing governance rights and activating RDNT emissions on both deposits and borrows within Radiant Capital. Radpie accrues platform fees from Radiant Capital’s revenue stream by maintaining a hold on dLP tokens, thereby providing a sustainable and consistent avenue for value generation.
Radpie, offers Radiant users and dLP holders the chance to earn RDNT rewards without any lock up by converting their dLP into mdLP. mdLP is the Radpie version of dLP. mdLP can be staked on Radpie to earn boosted passive income.
Radpie also has automated Radiant’s popular looping functionality to offer users the opportunity to more easily earn boosted yields without the need to personally hold any dLP. The platform utilizes its own dLP holdings to optimize the pools on Radpie, which in turn allows users to seamlessly earn RDNT emissions and increase their revenue.
While Radiant markets have provided some of the highest, most consistent lending yields for those willing to loop positions (lend, borrow the same asset, lend, repeat), Radpie makes the process of earning these Radiant yields as simple as depositing with one transaction and prevents them from having to manage a leveraged position that could be liquidated if not properly maintained.
Today, I’ll show how I can earn more sustainable yields on Radiant Capital with Radpie without having to personally hold dLP!
How to Earn Boosted Yields on Radiant Capital with Radpie
Before we get started, please be aware of these risks.
- Smart contract risk in Radiant Capital and Radpie
- Systemic risk in DeFi composability
- Front-end spoof attack
- Exploits in economic design of…
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
