RFP-38: New Revenue Management with Fewer Reward Assets

This proposal seeks approval to designate fewer chain-specific default reward assets that an increasingly large reward basket can be converted into to improve the user experience and reduce gas fees.

Abstract

A standout aspect of Radiant’s value proposition as a next-gen lending protocol is the revenue sharing of real yields (in blue chip assets and stablecoins) with users of the platform who supply locked liquidity, with $33.5 million in protocol fees paid out over the past 2 years. As the Radiant dApp extends support for more and more collaterals, especially by adding dozens more Radiant Innovation Zone (RIZ) isolated altcoin markets, the process of claiming dozens of collaterals will be getting even more unwieldy and less capital-efficient than it has already been with recently added main unified markets collaterals such as wbETH and weETH.

Motivation and Rationale

Based on the supported chain, users can claim 7 to 9 assets in the pending reward basket at a time, an all-or-nothing affair. However, due to the number of assets as well as status checks on each of them prior to execution, these sizable transaction bundles typically are gas-intensive and costly, despite extensive past efforts to optimize gas fees. The user experience (UX) has also been less than ideal. Introducing a revenue management feature that economically auto-converts the pending reward basket into a smaller set of popular blue-chip assets will vastly improve the UX and overall economics. This feature has also been a popular community enhancement request

Key Terms

RIZ: Radiant Innovation Zone is an imminently available v3 feature that will support popular altcoins representing this bull run’s hot narratives (dePIN, RWA, LRT, AI, Gaming, NFT, Meme… etc) in isolated markets.

Specifications

Based on utility and economics, the following approach is recommended:

1. Low gas cost chains: BTC + gas token (ETH or other) + stable
2. High gas cost chains: Gas token (ETH or other).

Specifically, these assets are recommended for each of the following chains:

• Ethereum: ETH
• Arbitrum: WBTC, ETH, USDC
• BNB Chain: WBTC, BNB, USDC
• Base: WBTC, ETH, USDC

Once the new revenue management feature is implemented, the new rewards will accumulate and be evenly divided between only those newly designated assets, not the full complement of what is in the money markets.

During the transition period, previous accumulated rewards will still be shown in the pending reward basket until claimed. After legacy rewards have been claimed, those legacy asset types will be removed from the reward section. The exception is that new rewards do get stacked with previous asset types (do not get removed) if they have been identified as new revenue management assets on that chain, such as BTC, ETH, or USDC…

Timeline

Within 30 days of ratification.

Overall Cost/Impact

• User Impact: There will be a significant improvement in the claiming workflow for users. This has been one of the most popular enhancement requests, and it will finally be delivered.
• System Impact: Minimal to none, as it is a discrete feature enhancement.
• Legal & Compliance Considerations: N/A.
• Costs: Minimal.

Voting

• In Favor: In support of proposed steps to designate default reward assets per supported chain.
• Against: Against implementation of RFP-38
• Abstain: Undecided, but contributing to quorum