RFP-9: Improve RDNT Liquidity and Expand POL - Protocol Mechanics

Abstract

RFP-9 proposes a request for RDNT tokens from the RDNT DAO Reserve to expand Protocol Owned Liquidity (POL) as well as expand liquidity on current and future centralized exchanges and Radiant Protocol omnichain deployments

Motivation

At genesis of Radiant protocol, 30M tokens were minted to provide initial liquidity on Sushiswap, which served as the primary venue for obtaining RDNT, outside of emissions. 30M RDNT (3% of FDV) was the total amount initially allocated to liquidity in the genesis tokenomics, which did not leave sufficient RDNT for future launches on new chains (e.g., BNB Chain, Mainnet, Polygon) as well as liquidity for centralized exchanges, which all have their own liquidity requirements, ranging from $50K - $500K per venue.

RDNT has significantly expanded the venues where it is available, including Uniswap and TraderJoe v2 on the DEX side. In addition, many centralized exchanges approached Radiant about listing the RDNT token, with several conversations leading to successful listings, such as Gate.io, MEXC, Bybit, Bitget, Bittrue, and Ascendex. There are additional venues in the pipeline that the protocol must also budget for in the future.

The Radiant DAO must also plan for its imminent expansion onto BNB Chain, Eth Mainnet, and future EVM Radiant deployments. All of these chains will require the protocol to seed liquidity using POL.

Beyond requiring additional tokens for new chain launches and additional exchanges, many members of the community have raised the point around Radiant Capital expanding its POL (Protocol Owned Liquidity) and diversifying its treasury to add ETH, BNB, and stablecoins - all required to provide liquidity. This POL would be permanent liquidity that is not subject to retail LP movements and would guarantee liquidity conditions, thus improving the profile for prospective new users of Radiant.

There have been considerable discussions in the Radiant Discourse regarding expanding POL by community members. In particular, using Arrakis and Gamma Strategies:

Arrakis Finance Discussion

Gamma Strategies POL Discussion

Regarding selecting a protocol to work with, a follow-up RFP will outline the various options between working with Arrakis, Gamma, or both protocols for Liquidity / POL Bootstrapping.

Key Terms

• POL: Protocol Owned Liquidity, or liquidity not owned by any individual team member and is directed by the Radiant DAO
• CEX: A Centralized Exchange, such as Coinbase or Binance
• DEX: A Decentralized Exchange, such as Uniswap or Pancakeswap

Specifications

Request 30M RDNT tokens (3% of FDV) from the RDNT DAO Reserve. These tokens would be used exclusively for the following purposes:

• POL bootstrapping via Arrakis (PALM Product) or Gamma Strategies
• Providing POL on new DEX venues (BNB Chain, Mainnet, Polygon, etc.)
• Maintaining liquidity requirements of centralized exchanges (both current and future exchanges in the pipeline) via existing and potential new market makers

This request would provide Radiant Capital with the liquidity needed to support the multi-year omnichain vision and bring Radiant to a global audience via centralized exchanges.

Steps to Implement

• Issue 30M vested RDNT tokens from the Radiant DAO reserve to the Radiant Liquidity Multisig
• Create a follow-up proposal that will lay out Radiant’s POL bootstrapping strategy with Arrakis and/or Gamma Strategies

Overall Cost/Impact

Arrakis and Gamma have their own fee structures which are laid out in these discussion topics

Arrakis Finance Discussion

Gamma Strategies POL Discussion

Timeline

Implementation would go into effect upon completion of the vote

Voting

• In Favor: Supportive of RFP-9, improving RDNT liquidity and expanding POL
• Against: Against implementation of the RFP-8 proposal
• Abstain: Undecided, but contributing to quorum