[RADIANT] [FINAL] [STIP - Round 1]

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Radiant DAO has proposed a strategic grant from Arbitrum DAO to expand their omnichain money market, aiming to boost liquidity and ecosystem growth, with community feedback being mostly positive despite some concerns about liquidity incentives. The proposal, which is moving towards a Snapshot vote, includes milestones for increased TVL and user growth, and plans for collaboration with other protocols.

What is this about?

Radiant DAO has submitted a proposal for a strategic grant from the Arbitrum DAO to support the growth of their omnichain money market project, Radiant Capital. The grant aims to enhance liquidity, enrich the ecosystem, and integrate future developments. The requested grant size ranges from 37,952 to 2,852,044 ARB, with a detailed breakdown for airdrops, liquidity provisions, and strategic initiatives. The proposal includes milestones tied to TVL and user growth, with a focus on attracting new users and increasing sequencer revenue. Radiant Capital plans to use Dynamic Liquidity Provisioning (dLP) to incentivize liquidity and collaborate with existing protocols. The proposal has been marked as FINAL and is moving towards a Snapshot vote.

How is the community reacting?

The community reaction is largely positive, with many users expressing support for the proposal and its potential to add value to the Arbitrum ecosystem. Users like Wolverine, Hell0men, Matt_StableLab, 0xsaitama, Tritium, Donhortega, Kingofsparkles, Blazar, Whereismymind, Brob, Bakgwei, Perl, Sxlveign, Traderjoe, Penpie, Apoorv9, Mani7, CastleCapital, KMQZ, Acidhoe, Yfarm, RogerRadiant, Mfer, BlockworksResearch, IZUMi_Finance, SEEDGov, Michigan_Blockchain, and ITUblockchain have all provided feedback, with many endorsing the proposal and its objectives. Some concerns were raised about the focus on dLP and RDNT token incentives, the cost of borrowing, and the potential for "parasite liquidity," but Radiant DAO has addressed these concerns and adjusted their proposal accordingly.

Why this is positive?

  • The proposal could lead to a 19% increase in TVL and 80 ETH in sequencer revenue.
  • Radiant's v2 tokenomics encourage committed participation and revenue sharing.
  • The grant includes milestones for incremental TVL and new dLP, with incentives for locking dLP on Arbitrum.
  • Collaborations with other protocols like GMX v2, Camelot v3, Dopex v2, and PlutusDAO are planned to diversify liquidity pools and expand utility.
  • Radiant has a strong track record on Arbitrum, being the top lending protocol by TVL and DAUs.
  • The proposal includes a transparent tracking system for ARB allocations and milestone achievements.

Why this is negative?

  • Concerns about the heavy allocation to RDNT/WETH liquidity and whether it benefits ecosystem users as much as token holders.
  • Questions about the effectiveness of the dLP model and whether it fosters "parasite liquidity."
  • Skepticism regarding the need for the majority of incentives to be directed towards users who lock dLP.

Next actions

  • The proposal has been marked as [FINAL] and is moving towards a Snapshot vote.
  • A Governance Call on Discord is invited for further community discussion.

Posted 2 months ago

Last reply a month ago

Summary updated 12 days ago

Last updated 06/12 00:44