With the development of DeFi, the current benchmark interest rate on the chain can be confirmed through the ETH Staking yield rate. Therefore, real-world funds have the choice of obtaining on-chain benchmark returns and off-chain benchmark returns. This arbitrage model inspired by the difference between on-chain and off-chain benchmark interest rates is likely to cause a certain degree of change in the form of on-chain asset management products. The off-chain benchmark yield is generally recognized as the Federal Reserve interest rate, which means that when the Fed interest rate is lower than the on-chain benchmark yield, CeFi funds based on the arbitrage principle will enter the chain for ETH staking, triggering the next wave of DeFi inspired by arbitrage behavior narrative.
Since the ETH staking yield will become one of the benchmark interest rates on the chain after the Shanghai upgrade, borrowing costs within DeFi may also increase accordingly. Changes in benchmark yields will profoundly affect the development model of DeFi. The current ETH borrowing interest rate of AAVE is 4-5%, which is very close to the ETH staking yield.
LSD stands for Liquidity Staking Derivatives, which are liquid pledged derivatives, more specifically stETH, rETH and other assets. LSD essentially falls into the asset class of Yield Bearing Assets. Due to the benefits of ETH 2.0 and the Shanghai upgrade regarding ETH staking products, LSD has entered people's field of vision as a separate track.
It is the most commonly used standard protocol for NFT. It defines an interface specification for token interaction and circulation that is indivisible and unique to Ethereum. Under this specification, NFT has the following characteristics:
1. The unique token id within the scope of the contract;
The vast majority of trading volume in traditional and token markets comes from a small number of market makers (MMs). In the NFT market, trading activity from MMs looks very different from trading activity from collectors. Before Blur, there were very few MMs in NFT. As this market matures, you will see more MMs enter this market. It is important for everyone to understand what is happening in the game, MM provides liquidity and profits from the spread of the real price of the asset. Every deal they make comes in the form of royalties paid to the creator. Their campaigns will look different than what NFT enthusiasts are used to. But their entry allows more players to enter the market.
Inscriptions are NFTs that live in the Bitcoin blockchain. An inscription is created when a document, such as an artistic image, is written (engraved) into Bitcoin units, called satoshis.
Satoshis are the smallest individually identifiable units of Bitcoin (one hundred million satoshis equals one Bitcoin). Inscriptions, also known as digital artwork, are native to the Bitcoin blockchain and are enabled through the ordinal theory protocol.
TwelveFold is a limited-edition, experimental collection of 300 generative art pieces inscribed on satoshis on the Bitcoin blockchain. These works represent a complete art project and will have no other utility and will not interact with or be associated with any previous, ongoing or future Ethereum-based Yuga project.
What is the difference between SSV and node service providers such as Lido?
1. SSV itself is an infrastructure that serves validators, but SSV does not do asset management, that is, SSV does not absorb users' ETH and then combine it.
2. Lido is a real pledge service provider. Users provide ETH to Lido, and Lido has control over the user's assets.
What are the two types of market makers’ businesses?
1. Traditional market makers focus on projects with huge market capitalization. Their main goals are to maintain established prices, maintain market liquidity, and establish trading strategies for Token unlocking.
2. The market makers that provide project consultation are mainly:
The health factor will increase or decrease based on fluctuations in the value of the underlying token of the deposit.
For example, if you deposit BTC as collateral and use it to borrow USDC, if the value of BTC declines due to market conditions, the underlying value of your collateral will decrease accordingly. This can negatively impact your health factor and increase the risk of liquidation.
If the health factor is maintained strong, it can provide portfolio flexibility in two ways:
1. Liquidation is less likely, especially when volatile assets are used as collateral (low-risk strategy)
2. Increase borrowing qualifications to leverage more collateral (high-risk strategy)
RDNT, Radiant’s native utility token, is distributed to users who provide utility to the platform as lenders, borrowers, and RDNT/WETH liquidity providers.
Through the Radiant DAO, the community uses locked RDNT to vote on important measures.
By interacting and providing utility to the platform, users can capture the added value of community participation through the native utility token $RDNT for borrowers and platform fees.
Liquidity mining emissions must vest over the course of four weeks (28 days), but the 50% penalty can be claimed immediately. This penalty is then distributed to users who choose to lock RDNT for 28 days.
50% of emissions released over two years as an incentive for suppliers and borrowers
20% as a reward for Pool 2 liquidity providers, released in two years
7% is allocated to core contributors and advisors. These are released linearly over the course of a year
20% to the team, released linearly over one year, with a three-month cliff (10% of the team allocation is locked at the genesis of the protocol, and unlocked at the three-month cliff)
Traditionally, to get a loan, you would go to a bank or other financial institution with a lot of liquid cash and provide them with collateral. Radiant removes the middleman from asset trading, futures contracts and savings accounts.
In order to operate at maximum capacity, lending protocols must run on a network with high activity and widespread institutional adoption. There are many L1 options, but Ethereum is still the most used. However, historically it has been hurt by high transaction fees.
The optimistic rollup solution implemented by the Arbitrum network embodies the present and future of Ethereum scaling.
Radiant’s cross-chain interoperability will be built on top of Layer Zero, v1 leveraging Stargate’s stable router interface. Lenders wishing to recover collateral will be able to indicate which chain to withdraw funds to, and what percentage they wish to be sent to each chain.
Radiant is focusing on core products that are resilient to oracle operations and leveraging more than $2 million already spent on security audits performed at Layer Zero and Stargate. Radiant itself has been fully audited by PeckShield and Solidity Finance.
Radiant aims to be the first full-chain money market where users can deposit any major asset on any major chain and borrow a variety of supported assets across multiple chains.
The primary goal of Radiant DAO is to consolidate decentralized liquidity that is currently scattered across the top ten alternative layers.
Lenders providing liquidity to Radiant are interacting and providing utility to the platform. Lenders can gain added value from community participation through the native token $RDNT.
Borrowers can withdraw collateral funds to obtain liquidity (working capital) without selling their assets to close the position.