RFP-37: Redistribution of the First LayerZero Airdrop for Radiant

Abstract

RFP-37 aims to redistribute the first LayerZero airdrop allocation, denominated in LayerZero's forthcoming token, ZRO, to Radiant Capital's community and contributors. LayerZero's token generation event, along with potential future protocol airdrops, allows projects that have deployed OApp, OFT, or ONFT contracts before LayerZero's first snapshot (11:59:59 PM, May 1, 2024) to submit proposals detailing their redistribution plans. This proposal outlines the Radiant DAO's strategy to incentivize its contributors, ensuring alignment with the community and supporting the long-term growth of the project.

Additionally, Stargate is likely to allocate 18% of its LayerZero airdrop to reward partners like Radiant for activities that include cross-chain borrows. This will be factored into Radiant’s overall redistribution strategy as detailed below, pending final approval.

Motivation

Since adopting LayerZero with the initial v1 launch in July 2022 and OFT capability in March 2023 with v2, Radiant has a long history of active support and integration with the LayerZero omnichain ecosystem. This airdrop provides an opportunity to acknowledge and incentivize dedicated contributors for their past participation, driving further engagement, collaboration, and long-term growth.

Dynamic Liquidity Provisioning (dLP) is central to Radiant’s value proposition, representing long-term liquidity that secures the protocol and supports a stable growth trajectory. Given its critical impact on Radiant’s economics, dLP will receive the majority of Radiant’s ZRO allocation.

Key Terms

• Stargate Foundation RFP: An internal Stargate proposal that allocates 18% of its LayerZero airdrop to reward partner protocols, including Radiant, for activities such as cross-chain borrow transactions.

• Radiant's Stargate Partner Allocation: Radiant’s portion of the 18% allocation from Stargate's LayerZero airdrop, based on cross-chain borrow transactions performed on Radiant’s platform.

• dLP Allocation Formula: A formula used to calculate individual Dynamic Liquidity Provisioning (dLP) allocations in the airdrop, taking into account both time-served and whether the dLP was withdrawn.

• Withdrawn dLP: Dynamic Liquidity Provisioning (dLP) that has been withdrawn or exited prior to 11:59:59 PM UTC on May 1, 2024.

• OFT-RDNT Bridge Activity: The process of transferring RDNT tokens across Radiant’s supported blockchains using LayerZero's OFT technology.

Specifications

The Radiant DAO has identified the following categories and options for redistributing the airdrop, which include Radiant's potential share from Stargate's partner airdrop allocation and the direct allocation from LayerZero.

Allocation Breakdown

1. Stargate Partner Allocation

• Radiant’s share of Stargate’s 18% partner airdrop will be distributed to all past cross-chain borrow activities up to 11:59:59 PM UTC on May 1, 2024.

2. Direct Allocation from LayerZero

• 10% of Radiant’s allocation will go to the development team, as per LayerZero’s guidance, to cover salaries and expenses.

• 90% of Radiant’s allocation will be redistributed based on the following options, which will be determined by community voting:

Redistribution Options

Option 1:

• 15% to all past OFT-RDNT cross-chain bridge activities up to 11:59:59 PM UTC on May 1, 2024

• 75% to dLPs

Option 2:

• 10% to all past OFT-RDNT cross-chain bridge activities up to 11:59:59 PM UTC on May 1, 2024

• 80% to dLPs

Allocation for OFT-RDNT Cross-Chain Bridge Activities

The allocation for past OFT-RDNT cross-chain bridge activities will be calculated as:

Bridge Allocation = (Total Individual RDNT Bridged / Total RDNT Bridged) * Allocation for Bridge Activities

Where:

• Total Individual RDNT Bridged is the amount of RDNT bridged by an individual.

• Total RDNT Bridged is the total amount of RDNT bridged by all users.

• Allocation for Bridge Activities is either 15% or 10% of the total direct allocation from LayerZero, depending on the selected option.

Formula for dLP Allocation

The allocation to individual dLPs will be calculated using the following formula:

dLP Allocation = (Total Individual dLP / Total dLP) * Time-Served Multiplier * Status Multiplier

Where:

• Time-Served Multiplier = (Duration of Individual dLP / Maximum Possible Duration).

• Maximum Possible Duration is the full period of time between Radiant’s v2 launch up to 11:59:59 PM UTC on May 1, 2024.

• Status Multiplier differentiates between active and withdrawn dLP and is subject to community voting.

Status Multiplier Voting Options

Furthermore, the DAO will vote to determine the Status Multiplier for withdrawn dLP. A lower multiplier assigns less weight for users who have locked dLP at any given point during the Maximum Possible Duration but have subsequently withdrawn it:

| Option | Active dLP (still locked) | Withdrawn dLP | |--------------|---------------------------|---------------| | Option 1 | 1 | 0 | | Option 2 | 1 | 0.1 | | Option 3 | 1 | 0.25 |

Timeline

Addresses and allocation data will be submitted to LayerZero by May 31, 2024, and to Stargate by June 5, 2024. Radiant will follow LayerZero and Stargate's plans for the timing of the airdrop and redistribution.

Overall Cost/Impact

• User Impact: No changes to the application are required.

• Costs: Minimal development involvement required.

Voting

The community will vote on the following seven options, each combining a specific allocation split between OFT-RDNT bridge activities and dLP, and a status multiplier for withdrawn dLP:

| Option | Split | Withdrawn Multiplier | Summary | |----------------------------|---------------------------------|----------------------|-----------------------------------------------------| | A) 15%/75%, 0x Withdrawn | 15% to OFT-RDNT, 75% to dLP | 0 | Higher allocation for bridge activities, no allocation for withdrawn dLP | | B) 15%/75%, 0.1x Withdrawn | 15% to OFT-RDNT, 75% to dLP | 0.1 | Higher allocation for bridge activities, low allocation for withdrawn dLP | | C) 15%/75%, 0.25x Withdrawn | 15% to OFT-RDNT, 75% to dLP | 0.25 | Higher allocation for bridge activities, moderate allocation for withdrawn dLP | | D) 10%/80%, 0x Withdrawn | 10% to OFT-RDNT, 80% to dLP | 0 | Higher allocation for locked dLP, no allocation for withdrawn dLP | | E) 10%/80%, 0.1x Withdrawn | 10% to OFT-RDNT, 80% to dLP | 0.1 | Higher allocation for locked dLP, low allocation for withdrawn dLP | | F) 10%/80%, 0.25x Withdrawn | 10% to OFT-RDNT, 80% to dLP | 0.25 | Higher allocation for locked dLP, moderate allocation for withdrawn dLP | | G) Abstain | - | - | Undecided, but contributing to quorum |