Radiant Capital’s Earnings Exploding, Time To Load The RDNT Bag?
November 08 2023 - 8:00PM
NEWSBTC
Radiant Capital, a lending and borrowing protocol for users to
borrow various assets across multiple chains, is rapidly closing in
on Aave, looking at earnings data over the past six months. Radiant
Capital Earnings Rising: What’s The Trigger? According to Token
Terminal statistics on November 8 shared by one user on
X, @Flowslikeosmo, Radiant Capital generated $5.8 million in
revenue despite a relatively lower level of liquidity than Aave.
@Flowslikeosmo, who claims to be a crypto researcher, said Radiant
Capital’s earnings will likely explode in the upcoming sessions,
especially once the 2.8 million ARB begins to be deployed. Radiant
Capital is a popular cross-chain decentralized money market through
which users, regardless of their choice blockchain, can either lend
their assets and earn passive income or borrow assets trustlessly.
This way, the decentralized finance (DeFi) protocol has opened up
liquidity and boosted access to multiple blockchains. Related
Reading: Dogecoin In Tight Zone: Why A Rally Will Happen If DOGE
Clears $0.076 To perform effectively, the protocol relies on
LayerZero, which enables trustless and decentralized communication
between blockchains using Oracle Relays, allowing platforms to be
more interconnected and ledgers to be more interoperable. As
Radiant Capital offers services, the DeFi protocol generates
earnings or revenue primarily from fees. The platform charges
a protocol fee on all transactions. Earnings from this allow the
team to be operational while allowing the protocol to generate
revenue. However, it should be noted only 15% of this fee is used
to cover operational expenditure, with the rest redistributed to
users as yield. Besides, there are fees billed to users taking
flash loans. The protocol rewards providers with RDNT to
incentivize liquidity provision, depending on the amount provided
and the duration locked. ARB Airdrop, Will RNDT Rally To New 2023
Highs? Earnings generated depend on the activity level, directly
influencing protocol fees accrued and the number of users taking
flash loans. Following Radiant Capital’s recent announcement that
it plans to airdrop 2 million ARB following the Arbitrum DAO‘s
approval of a proposal first floated in late September,
activity could skyrocket in the coming months, boosting earnings.
Related Reading: Solana Whale Deposits $11M In SOL To Binance,
Bearish Signal? Moreover, the protocol’s liquidity is expected to
increase with this approval. The ARB airdrop will be used to
incentivize liquidity provision. Additionally, Radiant Capital will
strike more partnerships, allowing it to expand to other chains,
including Ethereum and Arbitrum. According to Dune Analytics data,
the number of RDNT holders continues to rise, mirroring its general
price performance. Thus far, RDNT is up 40% from October lows. The
immediate resistance level at $0.33 must be broken for the coin to
rally, even registering new 2023 highs. Feature image from Canva,
chart from TradingView
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