By Michael Scott
Binance Labs has, in its recent statement, confirmed investing $10 million to facilitate the decentralized finance (DeFi) protocol. The $10m allocated towards Radiant Capital targets enabling the DeFi lending protocol to integrate more blockchains. The protocol considers integration critical to allow users to transfer more tokens across various chains.
Expanded and Facilitated Lending and Borrowing Across Blokchains
Binance Labs considers the investment facilitative to Radiant Capital’s objective of easing users’ capability of lending and borrowing across various blockchains.
Radiant Capital involves a lending protocol built upon Binance-supported LayerZero Labs. The firm is receiving $10 million to fund its expansion. Half of the investment would fund the Radiant’s DAO.
The protocol targets extending the current services allowing token borrowing and depositing. It intends to expand the scope to more blockchains besides BNB Chain and Arbitrum chain build upon the Ethereum blockchain.
The Binance-backed LayerZero realized a $3 billion valuation following the fundraiser led by Samsung and Christie. Binance Labs head Yi He lauded the Radiant investment as a catalyst to fuel mass adoption of DeFi protocols within the crypto space.
Radiant Targets Operations on EVM Compatible Chains
Radiant’s executive reiterated the firm’s devotion to becoming chain agnostic as it eyes launching operations on all Ethereum Virtual Machines (EVM) compatible chains that DAO approves through voting. The executive considers the involvement of DAO to vote for the chain to expand operations and sustains transparency. Also, it would benefit users by excluding security when executing transactions.
The involvement of Binance Labs in the Radiant Capital reignites the previous support granted to other bridging projects. Previously, it backed the Neutron platform developed by Cosmos Labs as a smart contract solution oriented towards integrating projects in different chains.
The Radiant’s announcement revealed plans to expand across EVM-hosted chains. The EVM involves the virtual environment facilitating the interaction of chains powered by the smart contracts solution.
Community Voting Involvement in Transforming Radiant into Cross-Chain Money Market
Radiant restated that the cross-chain options rely on community votes across the DAO. As such, the members would vote on various aspects, including the Loan-to-value profile for the borrowers. Radiant primary contributor George McCallan acknowledged that the approach would align with the protocol’s mission.
Radiant targets becoming the cross-chain money market similar to the Polkadot project-based Equilibrium.The announcement indicated that Radiant supported ten digital asset classes, including Arbitrum, ETH, and USDC stablecoin.
Bridging various Ethereum-based chains involves a shared objective by multiple developers. The approach is the preferred channel for companies pursuing improvement on the main net shortcomings. Multiple activities within the base layers make Ethereum costlier and slow in usage.
Radiant Investment on Mainnet to Unlock Support for 20 Assets
The Radiant announcement indicated that solutions identified as Layer 2 blockchains, such as Arbitrum, utilize unique designs that bundle transactions. Doing so yields huge speed settlement on the primary blockchain while minimizing the costs.
The Radiant setup features a support system restricted to ten digital asset classes. The number would rise from ten, which includes USDC stablecoin, ETH, and Arbitrum, upon the manifesting of the investment on the mainnet. Radiant projects to support 20 assets, among them liquid staking derivatives (LSDs), LUSD, and SNX.
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