Binance Venture Capital has invested $10 million in Radiant Capital, a lending and borrowing mechanism based on decentralised finance (DeFi). The increased money will be used to develop technology and products, such as extending collateral and deploying on the Ethereum mainnet.
Radiant is built on LayerZero Labs’ architecture, another Binance Labs portfolio business. By acting as a money market where users can deposit and borrow assets across several chains, the lending platform hopes to address DeFi’s fragmented liquidity problem. Dynamic Liquidity Providers, or traders, can lock in the native RDNT token to profit from interest and flash loan fees while also having governance control within the Radiant DAO. Platform fees for the protocol are paid in bitcoin (BTC), ether (ETH), BNB Coin (BNB), and stablecoins.
According to DeFi Llama data, Radiant presently has around $265 million in total value locked. The platform now offers over 20 collateral choices, with plans to add more in the future as the Radiant DAO expands its capabilities to further chains.
“Radiant Capital’s commitment to facilitating seamless cross-chain transactions for DeFi, as well as its performance on Arbitrum and BNB Chain, demonstrates its potential for driving mass adoption,” stated Yi He, co-founder of Binance and head of Binance Labs, said in a news release.
Radiant is based on LayerZero’s interoperability and cross-chain messaging technology, which garnered $120 million in April at a $3 billion value.R adiant Capital RDNT tokens rose more than 10% to 31 cents following the announcement of Binance’s investment.