Andrew Kang Profile picture
Jun 7 16 tweets 5 min read Twitter logo Read on Twitter
The New King of Money Markets

The @RDNTCapital Thesis… Image
1/ At $5B and $2B TVL, Aave and Compound are currently the largest money markets in crypto

By innovating while others cruise, @RDNTCapital is the top competitor to challenge the throne and has the potential to become the new King of Money Markets in all of crypto
2/ At a glance:

-$260m TVL across Arb/BSC

-First functional cross-chain MM (lend on X chain, borrow on Y)
-Launching on ETH & zkSync next
-Safely adding more collateral like $ARB (other MMs move slowly)
-Token design optimized for demand & protocol growth
3/ Aave & Compound yield just 1-2% on stables, less than treasuries

With >$100B stablecoin mkt cap & $10B+ stables once in MMs now idle, this untapped liquidity is a huge opportunity

As 10-40% stablecoin yields from an audited, year-old protocol become known, expect TVL growth
4/ The 2nd biggest opportunity is ETH + LSDs when the mainnet dApp launches

$4B in Compound & Aave now, but Radiant's sustainable, incentivized yield can capture market share.
Plus, many non-stETH LSDs worth billions lack money markets; Radiant can be their first choice.
5/ Flywheel

Radiant is one of the largest beneficiaries of $ARB and will be incentivizing 1-yr LP lockers.

No other MM has listed $ARB yet besides Radiant - given Radiant's lindyness, we can expect continued inflows, allowing the $2B of ARB to find a home for single-side yield
6/ Big driver of RDNT growth has been its V2 Tokenomics flywheel upgrade which has boosted the value of its incentives warchest while directing more sustainable emissions to long term protocol aligned users Image
7/ @gametheorizing breaks it down beautifully here:

1. User has $1M in deposits and meets the 5% in “locked LP” for emissions
2. RDNT price falls → User now below 5% threshold
3. User is incentivized to buy RDNT and re-lock more LP to stay above 5%.
8/ With the rising of @LayerZero_Labs and @zksync narratives, Radiant will be on track to be a big beneficiary, with people using the platform to farm potential airdrops
9/ Total TVL in both $ and ETH terms have followed hockey stick growth all year

Given we have taken a position, we will also be working with Radiant on some new growth hacking incentives to supercharge TVL growth and increase market share. Details to be announced in the future Image
10/ Revenues

Radiant has already overtaken Aave, Compound even Solana in 90D revenues

Looking at 90D trend, they are one of the fastest growing protocols in the space Image
11/ Valuation

Although it is high growth project, it is not trading at growth valuations, but rather cheap value, Beating out the blue chips on P/S ratio and in line on P/E ratio Image
12/ Active Community Engagement

The community is very active. DAO Governance proposals are getting 2,000+ votes on average with a third of all token holders registered in Snapshot Image
13/ Over the past few weeks, over $10M of dLP unlocked. When comparing total dLP tokens (both locked and unlocked) on 5/31 to those on 5/10, the total USD value of dLP has risen by approximately $5.2M. This is despite all the unlocks. Radiant is continuing to attract new lockers
14/ In the two weeks following RFP-17 and RFP-18 implementation, 71% of all new locks were for 6 months or 1 year. In contrast, only 40% locked for that duration last month. This indicates a strengthening commitment among participants
@MechanismCap is hiring public market research/investment analyst talent. Applicants can apply via DM with 2 written thesis/pitches on public market opportunities

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More from @Rewkang

Feb 27
Accumulated spot position in $STX last 2 weeks as well

As an investment, it hits the sweet spots of good supply schedule, strong marketability, cheap relative valuation, important catalysts ahead, proven bear market resistant builders
Main catalyst is the Bitcoin Halving in a year and I think Hal's comparison to LDO & the merge is pretty apt

Second big catalyst would be potential catalysts for DeFi on Stacks - potentially catalzying a 9-10 figure DeFi ecosystem built around $BTC
On relative valuation, my proxy would be Lightning network who i believe if they had a token would be valued at least multi-billion FDV just based on brand value alone, regardless of usage

But if DeFi on Stacks takes off, it probably leap frogs Lightning on actual usage
Read 7 tweets
Jan 25
Every cycle, people need a good excuse to miss the bottom

in 2018, it was Tether FUD. This cycle, it's "bad macro"

Markets are forward-looking - equities can bottom almost a year before recession

For $BTC, its likely the worst is behind us… Image
Yes, the Macro situation is not inspiring (for the US), but after an 80% drawdown, it seems to be overly priced in

It would take an extreme catastrophe to create even worse sentiment

The negativity of 2022 was an opportunity to buy cheap $BTC - can you ask more from the market?
The ego is a wonderful thing - its hard to admit being wrong and missing the bottom

But the sooner one can overcome that, the more coins one will acquire
Read 4 tweets
Jan 16
1/ 2022 Echo Bubble - Full thesis

A thread presenting evidence for a mid term bottom and oncoming "echo bubble" with thorough confluence from technical analysis, onchain data, and exchange/derivatives data
/2 From a TA perspective, we have just given every person that considers technicals in their trading/investing reason to start to look for long exposure. $BTC & $ETH have broken above diagonal trendlines & MAs, started weekly momentum crossovers, reclaimed important supports
3/ The most important indicator of an oncoming rally is the weekly RSI crossover from a previous very long period of bearish momentum implying large potential energy for a move higher based on a supply squeeze.

Read 19 tweets
Jan 15
$BTC Weekly RSI is in the midst of crossing the 50 level signifying a long term momentum reversal from bear to bull

Complete weekly crosses have only happened 5 times since 2015 and each cross has led to a significant rally with an average gain of 1775% from cross to top
The only cross that didn't result in a >100% gain was from Jan 2020 but this rally was likely prematurely cut short by the covid market nuke black swan
The same phenomena exists for $ETH and the implication is that it is also ready for a large momentum reversal to the upside
Read 4 tweets
Jan 12
Carvana $CVNA looks like prime candidate for short squeeze

- Down 98% from top
- 50%+ short interest
- Capitulatory candles and rounded bottom + recent reclaims
- Equities and retail flow coming back strong

If WSB gets ahold of this does it pull a $GME? @WSBChairman
Disclosure: Long $CVNA & $CVNA call options
Good intraday move so far

Looking like early stages of a monster squeeze
Read 7 tweets
Jan 12
Many alts showing good risk/reward set ups on technicals and narrative if we see continued bear market rally

Sharing notes below


- Shibarium L2 launch on the horizon
- $SHIB/$DOGE ratio creeping up from local bottom
- $SHIB USD failed to break rock solid 2021 and June lows
- Never had same massive short squeeze as $DOGE = powder keg ImageImage

- High APY of APE staking has locked up 25% of circulating supply
- Upcoming @OthersideMeta content can generate hype
- Blizzard President coming on as CEO for BAYC
- BAYC/MAYC NFTs have started trending up again
- Key coin for any NFT narratives

Read 5 tweets

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