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Layer1 protocol Radix: Reinventing Defi's Lego rules

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Layer1 protocol Radix, build the financial world from scratch

Reinventing Defi's Lego Rules: Building the Financial World from the Ground Up with Layer1 Radix

Original Source: Ascendex Research Institute & NBSP;

The crypto industry has been searching and thinking about what the financial world of the future will look like for a long time, and when the massive innovation movement that DEFI sparked spread, many found that it was fundamentally about creating a new financial system to replace the old one. At the same time, markets have come to understand that the nature of finance is decentralised.

Crypto finance is the most urgent need to solve the cost issue in the transaction, the implementation of the lower cost of DEFI transactions. The market with a strong demand for Defi is currently turning to PoS, sharding, Layer2 and other expansion ideas, but there seems to be a "fundamental conflict" between the high Gas issues caused by the Ethereum PoW chain and the need to keep Defi composable.

Layer 1 Protocol Focusing on Building Decentralized Finance Radix Defi is trying to pioneer a different style, starting with the underlying consensus, the upper application layer, the ecosystem layer and other components for each of the key layers of Defi to provide users with a new tool with scalability, ease of use and mobility potential. From the beginning of the algorithm to the construction of the upper financial Lego, to bear the future of the new era of the huge financial system.

Radix -- Layer1 protocol dedicated to DeFi

Radix focuses on building Layer 1 protocols for decentralized finance. Skype, Uniswap, and Aave investors are backing the future-oriented DEFI platform Radix. Radix is the only decentralized network where developers can build quickly without being threatened by intruders and hackers, where every improvement is rewarded, and where scalability is never a bottleneck.

Radix is a new protocol dedicated to solving the major problems in the market through Layer 1 (such as Ethereum, Boca, Avalanche, etc.), Radix wants to make DEFI competes with traditional finance and fundamentally changes the way people interact with money.

Radix's mission is to create a new decentralized global financial system, Radix believe that only when a able to transcend a single entity control, single organization control, single system controlled by the government, to finally get some freedom and change the world, at the same time provide "any assets in the world without friction access, liquidity and programmability".

To solve the three thorny problems in the development of DEFI -- Radix starts from the beginning to imagine DEFI

In the short term, the layer2-related expansion plan that has been discussed in the market may be effective, but in the long term, if the Layer1 expansion problem can be solved at the root, then there will be more possibilities for all types of defi-like applications.

From a systemic point of view, Layer2 is built on top of Layer1, with systems such as independent validators, liquidity providers and token economies.

Layer2 uses Layer1 to provide security guarantees and consensus for the start and end of the various operations above, while trying to host a certain amount of computing or transaction processing on Layer1. Thus, in some ways, Layer2 is more of a fix on a "broken" system than a solution.

For example, the development and use of smart contracts will become more complex as developers need to determine which Layer2 solution to use in a variety of solutions on the market. In addition, because individual Layer2's are independent of each other, new computer networks and crypto economic incentives are needed to run and secure the Layer2 network.

In this context, Radix will build Layer1's distributed ledger from scratch, removing the dependency on Layer2. Reduces complexity for developers and users, and improves the overall user experience and adoption rate.

Radix achieves linear scaling without compromising atomic composability, without sacrificing Layer2's stack layer.

Source: Radix White Paper

1. Specially build Defi programming environment

Today, the DEFI ecosystem has three thorny issues that are preventing the entire space from entering its next phase of truly explosive growth.

First, it is difficult for developers to build error-free code because applications are facing an increasing number of hacks and exploits that have cost them billions of dollars. On average, Solidity developers currently spend about 90% of their time protecting their code and only about 10% of their time writing features.

In response to the above problems, Radix's ending solution is to use the specially built DEFI programming environment. Radix achieves fast and safe development by allowing everyone to quickly build without breaking the development environment of the transaction, and from the safety and speed as well as the most important characteristics to accelerate production time and enhance Radix's innovative range.

Source: Radix White Paper

2. Ecological incentive mechanism for developers

The second problem facing the DEFI ecosystem is the developer ecosystem incentives. In general, building a billion dollar application often requires the support of the developer community, but only a few developers are rewarded with dApps, and incremental improvements don't help.

For example, if an ETH individual developer creates a breakthrough technological innovation for Ethereum, it will be difficult for the developer to make a big return unless he or she has been working on building the application.

Radix solves this problem by offering rewards to all those who contribute to the platform. Radix built a decentralized system of self-motivation that rewarded those who contributed code to the ecosystem.

For example, when a developer builds a useful new component for the Radix ecosystem and a dApp uses that component to create a new application that is easy to use, the component developer will receive a royalty every time a dApp is used. This ensures that code contributors and dApp builders are actively building and contributing to the Radix ecosystem.

Source: Medium

3. Preserve composability

Defi is currently very expensive to use due to its lack of scalability. Ethereum 2.0, Avalanche, Polkadot, and all the other Layer1's didn't solve Defi's scalability problem because its shard approach broke the ecosystem's fluidity.

In response to this problem, Radix has built a unique consensus algorithm, Cerberus, which scales linearly without breaking atomic composability, allowing all DEFI applications to scale proportionally, eliminating the need for Layer2-like scaling solutions, and reducing friction between fluidity.

Radix's unique new consensus algorithm: & NBSP; Cerberus

Radix uses a unique consensus mechanism called Cerberus, which is designed based on a "unique pre-segmenting ledger and a new consensus program called Braiding," and its rewards program, "Developer Royalties," provides protocol tier rewards.

Cerberus is a cross-shard consensus algorithm that works across multiple shards, not just within a single shard. In the traditional sense, the concept of consensus is to package transaction and broadcast after node confirmation. Non-cross-consensus, cross-sharding work is a cross-sharding consensus. Radix proposes Core-Cerberus, which uses stringent environmental requirements to achieve simple and powerful multi-shard transaction processing.

First of all, Cerberus uses different types of sharding. Instead of splitting a dApp or asset between a set of static sharding, Cerberus actually uses an infinite set of sharding. The asset and dApp are presented dynamically in these shards, and the results can run in infinite parallel.

This means that no matter how much demand there is on the Radix network, there is a natural economic incentive to add more nodes to share the load and increase throughput to match the network demand, which will increase the scalability ceiling without limit.

Second, Cerberus has removed the barriers between its shards with a new consensus design. While each shard can independently perform fast and secure consensus, Cerberus can directly "weave" these consensus processes into an "atomic ground" that can be executed instantaneously for each individual transaction. Weaving a cross-shard consensus is just as atomic and secure as a simple single-shard consensus, which means that composability can enjoy the same freedom and frictionless nature as on a single blockchain, but there are no extensibility limitations.

This is how Cerberus ensures the atomicity between the fragments for complex transactions such as rapid lending or other DEFI operations. In addition, there are no other transactions involving these validation nodes, and there is no need to wait for the consensus operation to complete. Validators can process hundreds or thousands of consensus transactions in parallel, which means that these cross-sharding operations don't essentially slow down the entire network.

Source: Medium

Financing Background & NBSP;

According to TechCrunch, British startup Radix DLT closed a $4.1 million round of funding in July 2020, The investors were LocalGlobe, a venture capital firm focused on seed stages, and TransferWise co-founder Taavet Hinrikus.

Olympia mainnet is coming online soon

After years of research and development, Olympia, the first version of the Radix public network, known as the main network, will be available on the Internet. It will be online on June 30, 2021.

The first post-Radix epoch was called the Bootstrapping Epoch, and it ran for about two weeks under different rules to ensure that the network started up smoothly. The two-week boot period will provide enough time for everyone to fairly prepare to participate in the RADIX network starting with EPOCH 2.

In the space of two weeks, the Ethereum network, Holders of an EXRD token can convert an EXRD into an XRD on the Radix network and pledge that XRD to participate in incentives and rewards. The token holder can select the verification node that he or she wants to pledge and lock the first pledge.

Radix released the EXRD prior to the mainnet's release to help improve the decentralization of ownership and collateral and to improve the security of the mainnet once it went live.

At the beginning of EPOCH 2, the Radix network transitions to normal EPOCH operation, and the protocol will combine only the first 100 nodes delegated during EPOCH 1 as a decentralized validation node of EPOCH 2.

Source: Medium

Token economic model

Radix plans to open the public offering of the EXRD token on October 8, which will be sold in total. 642 million EXRD tokens, priced at $0.039, and the unlock period of different tokens will be determined based on the market price. The unlock program will be launched on November 17, with a maximum circulation of 4.41 billion tokens and an initial circulation of 42 million tokens.

Total circulation: 24,000,000,000 eXRD

Initial circulation: 4,410,000,000 eXRD

Issue price: $0.039

Distribution of tokens

Pledge bonus: 50%

Stablecoin bonus: 10%

Team: 10%

Radix community: 12.5%

Radix Foundation: 9.8%

Development incentive: 2.5%

Network subsidy: 2.5%

Token offering: 2.7%

Source: Radix

Tokens to unlock

Token unlock depends on the change of currency price. Issued tokens will be unlocked from November 2020 after the public offering. Team tokens will be locked to the main network and then unlocked depending on the currency price.

Token application scenarios

Radix's token is a utility token with different application scenarios within the ecosystem.

For many Layer1 protocols, tokens are usually a means of paying for the platform's use of fees, which must be submitted every time an application is deployed or a transaction is sent, whereas on Radix, the entire fee is destroyed every time a transaction or anything is completed.

Secondly, for Layer1 protocol, tokens provide security for the network through pledge. In order to protect network security, XRD must be locked to the node. In return, as long as the operator of the node participates in the consensus, he/she will get part of the pledge reward.

Third, XRD is the platform's underlying token and can be used as one of the basic collateral or exchange token types by any application on top of the Radix Defi ecosystem.

The EXRD (ERC20) tokens currently released before the network goes live at the end of the second quarter of this year will be exchanged 1:1 with XRD.

According to the announcement of Summit Ascendex (BitMax) Exchange, Ascendex will open EXRD/USDT trading at 21:00 on June 29, Beijing time, and start charging business at 9:00 am on June 29. After the launch of Ascendex Exchange, XRD Mobility will be further enhanced, which will benefit the ecology at the same time.

summary

Overall, Radix aims to build a protocol tailored to DEFI, implements sharding at the Layer1 layer, improves performance through parallel processing and cross-sharding consensus, and implements composability through components. Fundamentally speaking, the financial system is effective to achieve the allocation of funds, which is achieved through a wide range of financial products, which means that the types and quantity of DEFI is far from sufficient, and RADIX will start from the foundation to complement the rapid development of DEFI.