RFP-7: Protocol Fee Distribution in v2 - Protocol Mechanics
AI summary
This proposal, RFP-7, aims to change how Radiant Capital's v2 protocol fees are distributed. It suggests allocating 60% of fees to Dynamic Liquidity (dLP) lockers, 25% to lenders, and 15% to a DAO Operational Expenditure (OpEx) wallet. Additionally, it proposes that RDNT tokens that are still vesting will no longer earn protocol fees, a change from the v1 design.
If passed, dLP lockers will receive a larger share of protocol fees, benefiting them. Lenders will see a reduction in their base APY from protocol fees. The DAO will gain a dedicated 15% of protocol fees for operational costs like salaries, marketing, and development, which could reduce reliance on selling RDNT tokens for these expenses. Vesting RDNT holders will lose their ability to earn protocol fees.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Abstract
RFP-7 proposes to adjust the protocol fee distribution in Radiant v2 by splitting it into three distinct buckets. Furthermore, this proposal seeks to reapproach the protocol’s handling of RDNT token vesting fees.
Motivation
For this DAO proposal, the primary aim is to provide a stronger utility proposition for liquidity providers in Radiant v2 by increasing their share of the protocol fee stream, while concurrently reducing the dilutionary impact of vesting RDNT. This will be done while keeping base borrowing fees competitive with all major lending protocols.
In addition, t…