RFP-3: Improve RDNT On-Chain Liquidity for v2 - Fund Allocation
AI summary
This proposal aims to improve the on-chain liquidity for Radiant's native token, RDNT, by restructuring its liquidity pools. Currently, large trades of RDNT face significant price impact due to insufficient liquidity. The plan is to move the existing RDNT-WETH liquidity pool on SushiSwap to a new 80-20 RDNT-wstETH pool on Balancer Protocol. This new structure is designed to reduce impermanent loss for liquidity providers and allow them to earn staking rewards on their ETH, making it more attractive to provide liquidity. For the BNB Chain, a 50-50 RDNT-WBNB pool will be established.
If this proposal passes, RDNT token holders will experience less price slippage on larger trades, making the token more accessible and attractive for bigger buyers and sellers. Liquidity providers will benefit from reduced impermanent loss and additional yield from staked ETH. The protocol aims to attract more capital to its liquidity pools, which could lead to a more stable and efficient trading environment for RDNT.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Abstract One of the issues facing the Radiant protocol in the early days has been the need for a deep on-chain liquidity pool for the RDNT token, with current total liquidity on-chain currently at ~$1M. While the liquidity pool is sufficient for small buys and sells, it is prohibitive for larger buyers and sellers. For example, a $25K buy of RDNT leads to a 4% price impact, which is not conducive to attracting funds and larger buyers and sellers.
While the initial approach was to attract external LP through heavily incentivized emissions, that proved to be an inefficient method, as the i…