Thread by @DeFi_Made_Here

You won't believe why @adamscochran added $RDNT to the S-Class

0/25 Thread 🧵

https://twitter.com/adamscochran/status/1615834225676288001?s=20

1/ Adam made his yearly shopping list with a lot of controversial bets.

But the most questioned choice was $RDNT in second place just behind $ETH.

Or probably he knew something?

https://twitter.com/bccponzi/status/1608812919407661056?s=20

2/ First, what is Radiant?

• It is a money market similar to @AaveAave or @compoundfinance but Radiant is omnichain.

3/ What does it mean?

• Users will be able to deposit any major asset on any major chain and borrow a variety of supported assets across multiple chains.

4/ How is that achieved?

• Omnichain interoperability is built on top of @LayerZero_Labs and @StargateFinance router infrastructure.

5/ I also covered @RDNTCapital more in-depth back in August explaining the underlying tech behind it.

But why did @adamscochran add $RDNT to the S-Class?

https://twitter.com/DeFi_Made_Here/status/1554118645474787329?s=20

6/ We need to go into upcoming v2 changes:

• Change of ERC-20 RDNT token to the LayerZero OFT (Omnichain Fungible Token) format

• Treatment of Exit Penalties in v2

• Treatment of Expired Locks

• Changes to Protocol Fees

• Dynamic Liquidity Provisioning

7/

• Change of ERC-20 token to the OFT

This migration will make cross-chain fee sharing much more seamless, and allow easier integration onto new chains (#BNBchain launch planned shortly after Arbitrum v2).

8/

• Treatment of Exit Penalties in v2

In v1, users had to vest RDNT emissions for 28 days or take a 50% cut if claimed tokens earlier.

In v2, vesting time increased from 28 to 90 days and the exit penalty for early exit became linear.

9/ This is an important update because it adds flexibility for users who want to exit the vesting position.

Before they had to decide to dump on the first day of vesting or wait until the end of the vesting as the penalty (50%) was the same on day one and at the last minute.

10/

• Treatment of Expired Locks

In v2 only locked $RDNT will be eligible to receive protocol fees.

As per the DAO vision, it would align token holders and protocol goals.

11/

• Changes to Protocol Fees

In v1 fees generated from borrowers were distributed 50-50 between $RDNT lockers and lenders.

In v2 60% of protocol fees will be allocated to lockers, 25% will be allocated to the base fee for lenders, and 15% to the DAO expenses.

12/ Together with the change to the treatment of expired locks and the introduction of dLP, it would significantly increase revenue for $RDNT lockers.

On the negative side, fees for the lenders would be twice lower.

13/

• Dynamic Liquidity Provisioning

Radiant is incentivizing lenders and borrowers with $RDNT emissions.

But with the introduction of dLP, a 5% ratio between total deposit value and dLP value must be maintained to stay eligible for $RDNT emissions.

14/ Locking mechanism would be changed from single-sided $RDNT in v1 to Dynamic Liquidity tokens v2 (80-20 @balancerlabs pool).

This is my favorite part, as for the protocol it is very difficult to incentivize

• Users
• Stakers
• LPs for a native token

all at the same time.

15/ Balancer style pools with 80-20 composition are, in my opinion, one of the best solutions to

• Share revenue with stakers
• Get liquidity for a native token
• Mitigate IL

16/ In my last thread, I explained that protocol can easily create an engaged community by sharing revenue with token holders.

Radiant is on the path to creating the first omnichain lending protocol with an aligned community

https://twitter.com/DeFi_Made_Here/status/1627769085290336272?s=20

17/ There will be always more talks around protocols that are sharing the revenue with the token holders than with the protocols that don't (eg @CurveFinance vs @Uniswap).

18/ At the moment when @adamscochran made his 1/268 $rdnt was at $2m M.Cap and $71M FDV with

• Unique product
• Engaged tokenholders
• Best P/F metrics

https://twitter.com/adamscochran/status/1615834352935636993?s=20

19/ After 1 month M.Cap is $47m - 23x, FDV is $225M - 3x.

At these values, M.Cap/TVL ratio is 0.58 which is higher than the Aave ratio of 0.25.

This means that people bet on the future growth of omnichain lending and revenue sharing model.

20/ Conclusion

We are probably witnessing @adamscochran first public successful prediction.

The potential of $rdnt at $2M M.Cap was deserving to get into the S-Class shopping list, gj.

21/ With the adoption of Radiant as a go-to lending market (with the help of an engaged community), TVL, fees generated, and the revenue shared will grow significantly making $rdnt a more valuable token.

22/ Disclaimer: I do NOT own $RDNT, this thread is not a call to action and it is not financial advice, but an overview of the token from @adamscochran shopping list.

Make sure to always do your own research.

23/ What do you think about Adam's shopping list and which token you would love me to analyze?

24/ That’s a wrap.

If you enjoyed this thread:

1. Follow @DeFi_Made_Here for more helpful threads
2. RT the tweet below to share this thread with your audience

https://twitter.com/DeFi_Made_Here/status/1628381196647337993?s=20

Thank You and stay safe!

25/ And by the way you are always welcome to subscribe to my newsletter and get alpha issues directly to your inbox.

alphamadehere.substack.com