RFP-43: Formal Retirement of Radiant v1

Abstract

The Radiant v1 lending protocol was launched on Arbitrum in July 2022. With the introduction of v2 on March 18, 2023, we initiated a transition process for users to seamlessly migrate from v1 to v2. During this transition, v1 continued to operate without support, allowing users sufficient time to fully vest their RDNT and assess v2's performance and stability without penalties.

Initially, a definitive sunset date for v1 was not set in order to facilitate a smooth and thoughtful transition. This RFP proposes to formalize the closure of v1 and submit the plan to the DAO for ratification.

Motivation

This proposal to discontinue v1 is motivated by the following factors:

1. Successful migration to v2: Since its launch in March 2023, Radiant v2 has effectively transitioned the user base from v1. The market size of v1 has decreased significantly, from $328 million to just $0.59 million, representing a reduction to 0.18% of its original size. This indicates that 99.82% of v1 positions have either migrated to v2 or have been resolved. As a result, there are currently zero balances in Pool2 and RDNT staking contracts.

2. Resource Optimization: Retiring v1 enables Radiant to reallocate operational and maintenance resources towards more active and growth-oriented initiatives.

By discontinuing v1, this proposal aims to streamline Radiant’s operations and concentrate efforts on developing and enhancing functionalities that deliver greater impact and value to our users.

Steps to Implement & Timeline

1. Proposal ratification (T+0): Initial announcement of the decision to deprecate v1 on Arbitrum to the Radiant community.

2. +2 weeks (T+2w): Cease funding for the 1:1 RDNT migration contract. Beyond this point, migration of v1 RDNT v1 tokens to v2 RDNT using the Radiant app’s migration wizard will not be possible once the contract is fully depleted.

3. +2 weeks (T+4w): Restrict the money market operations. After an additional two weeks from above, restrict money market operations to withdrawals only, discontinuing any new deposits. Send monthly reminders to facilitate reducing the total money market to zero.

4. +2 weeks (T+6w): Disable v1 accessibility via the frontend interface. Any subsequent withdrawals will need to be executed directly through smart contracts.

5. +4 weeks (T+10w): Officially sunset v1 contracts. Ten weeks from ratification. Any remaining deposits and borrows will be liquidated with a 15% fee, in line with the existing liquidation policy.

Overall Cost/Impact

User Impact

The impact on users is expected to be minimal as 99.8% of the v1 market has already transitioned to v2.

System Impact

There will be no adverse effects on the current v2 dApp as a result of sunsetting v1.

Cost

Cost outlay associated with this transition is minimal, primarily encompassing internal resources allocated for communication and necessary technical updates. Additionally, there is potential upside, as resources will no longer be required to perpetually fund the v1 migration contract.

Voting

In Favor: In support of RFP-43, agreeing with the decision to sunset v1 on Arbitrum, as described above.

Against: In opposition of RFP-43 regarding the sunsetting of v1 in the manner described above.

Abstain: Undecided, but contributing to quorum.