Payload
Summary:
Proposal to add gauge support for the newly created Radiant 80/20 RDNT/WETH pool which is currently the largest liquidity pool on Balancer Arbitrum.
The Radiant Capital DAO, a week into its v2 launch on Arbitrum and days from adding its second chain (BNB chain) to become DeFi’s 1st omnichain money market, has approved and implemented a Balancer 80/20 RDNT/WETH pool as its primary liquidity hub on Arbitrum via DAO governance RFP-3.
With v2, the DAO has fully aligned its tokenomics for activities that are compatible with the DAO’s collective-benefit ethos and a long-termism mindset. The results of this new Balancer pool have exceeded all expectations, and its first week’s volume was greater than all Arbitrum pools combined. To leverage this successful position further, the DAO is optimistically establishing this gauge and proposing to enable BAL emissions.
References/Useful links:
- Website https://radiant.capital/
- Documentation Portal - Radiant 2.0
- Github Page Radiant · GitHub
- Communities https://community.radiant.capital/
- Other useful links?
Protocol Description:
Radiant aims to be the first omnichain money market where users can deposit any major asset on any major chain and borrow various supported assets across multiple chains.
The Radiant DAO’s primary goal is to consolidate the ~$20 billion of fragmented liquidity (lending TVL) dispersed across the top ten alternative layers (source: DefiLlama).
Lenders who provide liquidity to Radiant are interacting and providing utility to the platform. In addition, lenders can capture the added value from the communities’ engagement through the native token $RDNT.
Borrowers can withdraw against collateralized assets to obtain liquidity (working capital) without selling their assets and closing their positions.
Motivation:
The Radiant DAO aims to be the most fee-earning & omnichain protocol in crypto whilst ushering in the next 100m of new DeFi users. Adding this gauge to the robust Dynamic liquidity vault (current liquidity is 30+m within its first week) represents another step in strengthening the relationship between the two protocols. In addition, this pool is intended to be the primary source of liquidity on the rapidly growing Arbitrum chain.
Details:
-
Governance: The Radiant DAO governance model can be found here: Proposal Process - Radiant 2.0.
-
Oracles: Radiant price feeds are secured by Chainlink oracles.
-
Omnichain: The RDNT token in v2 is an omnifungible (OFT-20) token and the v2 dApp provides users with an innovative borrow & bridge function via Layer0’s stargate stable router interface.
-
Audits: While Radiant v2 is primarily composed of the same codebase as Radiant v1 — the Radiant DAO takes safety & security seriously and tripled down on audits.
We did multiple top-to-bottom v2 audits with Peckshield and Zokyo, with zero unresolved critical or high issues. BlockSec was also hired for white hat hacking with zero unresolved issues.
-
Centralization vectors:
-
The Radiant DAO asserts that the network’s governance, development, or usage is not centralized
and progressively gets more decentralized as the number of RDNT token holders grows. Together
with Fenwick, Radiant set up the Radiant DAO governance portal (dao.radiant.capital) and ratified
the first two governance proposals, RFP-1, and RFP-2, on which RDNT token holders voted. -
The Radiant DAO Constitution includes a very clear process for the community to discuss,
propose, and vote on new measures, regardless of whether the team ceases to exist. This includes
technical changes, improvements, bug fixes, protocol changes (emissions, allocation points), or
other protocol improvements. The establishment of the DAO formalizes this, as well as voting power
through RDNT liquidity tokens. -
The smart contracts are verified, and any community member may propose changes or
improvements. Several community members who are not affiliated with the project at launch have
been brought on as “core contributors” in developing smart contract improvements and helping
manage portions of the Radiant community. -
Because Radiant was built on a similar framework to Aave and Geist, many of the core contracts
are upgradable by the owner. To mitigate security concerns and foster transparency, all Radiant
smart contracts are placed behind a[ timelock](https://docs.radiant.capital/radiant/contracts-and-
security/security-timelock), with a two-day delay for any action. The Radiant team has no intentions
to ever push upgrades to these contracts except to address a critical vulnerability. We will
prominently inform the community prior to any admin-related actions involving the timelock and
encourage community members to monitor inbound transactions to the timelock address. The
Radiant team will always announce all admin-related actions prior to queuing them in the timelock -
48,000 unique wallets have interacted with the protocol. Administrative functions within the smart
contracts are under timelock and Gnosis multisig. The committee that manages that multisig was
ratified as part of Radiant DAO’s first proposal,[ RFP-1]
(Snapshot).
-
-
Market History: Radiant fair launched on 7/24/2022 and was self-funded with no VCs. Radiant v1 became the top lending protocol on Arbitrum with 148.45m TVL before the transition to v2.
-
Value: This pool is intended to be the primary source of liquidity for Radiant on Arbitrum. In addition, the Radiant DAO sees the value of this gauge in alignment with other protocols in the ecosystem and sees potential and value in doing so with Balancer.
Specifications
Gauge Weight Cap
The RDNT v2 token and pool is quite new. Based on it’s mcap, weighting and fee contributions, it sits just on the boarder of the Capped Gauge Framework, sitting currently slightly over the limit allowing for an uncapped gauge based on high trading fees. The current intention of this pool is to allow collected fees to be paid back in to the gauge via Core Pool Bribes.
A Gauge capped at 10% provides more than enough room for these activities for the foreseeable future. In order to alleviate any concerns around RDNT being used in an “capture most of the pool and over-vote for it” scheme, a voluntary 10% cap has been placed on the gauge. Radiant may return to governance at a later date to request an increase as the need arises and the pool has more history to be used to evaluate it against BIP-57.
Gauge Type
Note that this gauge is a traditional gauge, not a single recipient gauge used as part of the ve80/20 program. As a result BAL incentives will be paid out to addresses depositing tokens in the Balancer Gauge. Not to a single smart contract that redirects these tokens to lockers.
Core Pools Designation:
While this pool contains no boosted tokens, a 0.5% fee has been set on the pool with an intention to participate in the BIP-19 boosted pool program. As with RBN/USDC gauge, It is therefore requested that 100% of the fees earned by this pool and not paid to the DAO are used to pay bribes on the pool. It is further requested that these fees are used bribe the RDNT/WETH pool directly, instead of participating in the distribution of bribes by TVL as following the protocol for mainnet instead of for side-chains specified in BIP-19. Handling of this pool should change in line with changes to BIP-19.
Details of Gauge to be whitelisted
- Gauge address: 0x19ff30f9B2d32bfb0F21f2DB6c6A3A8604Eb8C2B
- Pool address: 0x32df62dc3aed2cd6224193052ce665dc181658410002000000000000000003bd
The specific actions of authorizing the DAO multisig, adding the gauge, and removing the authorization using the gauge address above are included in the linked payload.