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Data analysis on the Radiant Chain: The liquidity mining Battle behind "cross-chain lending"

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Radiant's TVL is up 124 percent in the past month, making it Arbitrum's largest and fastest-growing borrowing agreement.

原文标题：《全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额》

原文作者：蒋海波，PANews

As the market has rebounded, DeFi projects have rebounded. Radiant TVL, a full-chain lender, is up 124% in the past month, making it Arbitrum's largest and fastest growing loan deal. RDNT prices have risen 20-fold from their lows. When borrowing is included, Radiant's TVL rises to $247 million, second only to GMX among all Arbitrum programs.

全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额

Defi Llama Lending TVL Ranking

Full-chain lending market

With the development of multi-chain ecology, cross-chain lending has become a necessary demand. The Aave header lending project will also support cross-chain lending in version V3, but it is not available yet. Just as Uniswap V3 will be deployed to the BNB chain, the choice of whitelist cross-chain Bridges is also controversial.

Radiant aims to be a full-chain money market where users can deposit assets on any supported chain and borrow a variety of assets across multiple chains. Cross-chain interoperability will be built on top of LayerZero, leveraging Stargate's routing interface to allow lenders of collateral to withdraw funds across chains.

As of February 6, Radiant is only available in v1 on Arbitrum, and is expected to launch Radiant v2 on Arbitrum around February 16, after which it will be deployed to the BNB chain and further expanded to other chains.

Among the features that have been launched, Radiant's cross-chain lending is to select the target chain to receive payments while borrowing money. Radiant uses Stargate to help users cross the chain after the loan is generated. If you want to return the money, but also need to cross the chain back to the source chain Arbitrum.

Radiant data: Stablecoin fund utilization capped, mostly liquidity mining demand

Total deposits on Radiant have been rising recently to about $240 million, according to data compiled by Dune Analytics @Shogun, This includes $106 million for USDC, $66.46 million for USDT, $38.36 million for DAI, $20.57 million for ETH and $9.61 million for WBTC. The sum of the three stablecoins accounts for 87.5% of deposits, leaving only a small amount of ETH and WBTC.

全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额

Radiant's total borrowings were about $176 million, of which USDC had $77.41 million, USDT had $52.8 million, DAI had $29.95 million, ETH had $10.95 million and WBTC had $4.59 million (WBTC borrowings were not updated and were extended from the previous day's figures). The three stablecoins accounted for about 91.2% of borrowings.

全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额

Overall, Radiant's fund utilization ratio (total borrowings/total deposits) is about 73.3%, meaning that for every $100 of Radiant's deposits, $73.3 is lent, a very high fund utilization rate. In contrast, Aave, the leading lender in the lending field, has total deposits of 6.81 billion dollars and total loans of 2.18 billion dollars, with a fund utilization rate of 32.1%.

Specifically for each asset, the fund utilization rate of USDC is 74.62%, that of USDT is 80.97%, that of DAI is 79.42%, that of ETH is 54.1% and that of WBTC is 47.26%. According to official documents, at the time of the borrowing, the LTV of both USDC and USDT is 80% and DAI's is 75%, meaning that for every $1 of USDC and USDT deposited, a maximum of $0.8 of assets can be borrowed. Almost all of the three stablecoins have reached the maximum utilization rate, indicating that almost all of the funds are for liquidity mining purposes rather than real borrowing needs.

全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额

Liquidity mining: Higher yields will further boost growth

According to Radiant's official website, deposits and loans of USDC, USDT, DAI, ETH and WBTC can all get RDNT tokens through liquidity mining. For each asset, the yield of borrowing and mining is higher than the interest paid on borrowing.

全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额

By combining the deposit APY, loan APY, RDNT mining yield and the official LTV of each asset, the maximum mining yield of each asset can be calculated. If the same amount of money is lent out at the highest rate after deposit, the current rate of return of each asset is DAI 52.2%, USDC 58.6%, USDT 62.8%, ETH 55.4%, and WBTC 37.2%.

如果考虑到产出的 RDNT 一次性解锁只能得到 50% 的 Token ，即时解锁的挖矿收益率分别为 DAI 21.3%、USDC 22.5%、USDT 24.2%、ETH 15.8%、WBTC 12.6%。

If RDNT stays the same or rises, deposits and borrowings in Radiant are likely to rise further, buoyed by high liquidity mining.

Radiant's earnings spread: The agreement cost is up to 50%

Radiant 的原生实用 Token RDNT 是一种 ERC-20 Token ，总供应量为 10 亿枚，其中 50% 作为存款人和借款人的激励，20% 作为 Sushi RDNT-ETH 池的流动性激励，其余 30% 分配给团队、核心贡献者和财库。挖矿产出的 RDNT 有 28 天的归属期，也可以支付 50% 的罚金一次性解锁。

50% of the actual interest incurred on the loan will be the Agreement fee (the other 50% will be paid to the lender). This Agreement fee will be available to RDNT Vester that is not collected upon completion of vesting and RDNT Locker that is directly locked by the user. 50% of the penalty is allocated to RDNT Locker, but the lock-in RDNT cannot exit early.

全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额

Radiant's 50% agreement fee is almost the highest compared with other programs, and Radiant depositors receive only 50% of the interest they generate. On the other hand, the reserve factor of Aave is only 10 to 20 percent. Only 20 percent of the interest is collected by the agreement, and the rest is distributed to the depositors.

Radiant will have to compete with other projects through higher liquidity mining earnings. In the absence of mining earnings, Radiant will be less competitive.

At present, Radiant has a high utilization rate of all kinds of funds due to the demand of liquidity mining. The higher the utilization rate, the higher the interest on borrowing. RDNT Locker and Vester both have a good yield at the agreement fee of up to 50%. RDNT Locker has generated more than $5 million in revenue for the year ended January 31. RDNT Locker currently has a lock-in APR of 31.4%.

Radiant v2: You need to provide liquidity to get the RDNT bonus

根据 Radiant 官方描述，预计将在 2 月 16 日上线的 Radiant v2 将对协议的核心机制、 Token 释放、效用和跨链功能产生革命性的改变，具体更新包括以下几点。

1、 Token 迁移，将目前的 ERC-20 RDNT Token 迁移到 LayerZero OFT（Omnichain Fungible）格式，以支持跨链费用共享。

2. Change the vesting conditions of liquidity mining rewards. The current form of 28-day vesting period and 50% penalty will be adjusted to 90-day vesting period, and early vesting can only get 10-75% RDNT.

3. RDNT that has been assigned needs to lock up the warehouse again to obtain the agreed income.

4. Change the income distribution, the interest share of the lender is reduced from 50% to 25%, 60% as the agreement expenses, 15% as the operating expenses.

5. Set up dynamic liquidity supply. In order to obtain the liquidity mining reward of deposits and loans, the liquidity of RDNT and ETH or BNB of 5% of the deposit value should be provided first, otherwise, only the real deposit income generated by loans can be obtained.

6. Extend the release of RDNT to 5 years (originally 2 years).

7. Support for more than 20 new collateral.

全链借贷市场 Radiant：基于 LayerZero 实现「借贷+跨链」，靠流动性挖矿推升存借款额

summary

Radiant's current approach to cross-chain lending is "debit + cross-chain", which uses Stargate to help the user cross the chain after the credit is generated. Existing users, most of them for liquidity mining purposes, are likely to continue to boost deposits and borrowing as yields are now higher.

The update to Radiant v2 may be intended to address the unsustainability of current liquidity mining, but it also creates uncertainty for existing lenders and borrowers, with reduced interest sharing, longer vesting periods, higher penalties, the need to provide liquidity in order to obtain mining incentives, and longer RDNT release times for users who want to realise gains as quickly as possible.