Arbitrum Voyage In KuCoin Community — Fireside Chats With Top Arbitrum Projects Listed on KuCoin
Dear KuCoin Users,
Time: March 1, 2023, 12:00 PM - 1:57 PM (UTC)
Radiant Capital (RDNT)
Official Website: https://radiant.capital/
Official Website: https://www.dopex.io/
Official Website: http://gmx.io
Hung Vu — DAO Administrator at Radiant Capital
Tz — Co-Founder of Dopex
Jone Zee — GMX Communications
Q&A from KuCoin
Host: Could you introduce RDNT and what makes the project unique?
Hung Vu: Capital in DeFi is extremely fragmented across chains, evidenced by the dozens of different money markets, and all with their liquidity.
Radiant Capital aims to be the first omnichain money market where users can deposit any major asset on any major chain and borrow various supported assets across multiple chains.
Radiant's cross-chain interoperability functions atop Layer Zero, with v1 leveraging Stargate's stable router interface. So, for example, lenders may reclaim their collateral and direct which chain to withdraw funds from and what percentage they'd like sent to each chain.
Radiant V2 will include revolutionary changes to core protocol mechanics, emissions, utility, and deeper cross-chain functionality.
Users of Radiant Protocol can lock Radiant LP (Liquidity Provider) tokens to receive a share of borrower loan repayments. Locking RDNT liquidity also activates the ability to receive $RDNT emissions from borrowing and lending within the money market. In addition, locked Radiant LPs hold governance power via the Radiant DAO and can create proposals and vote on the future direction of the protocol.
Host: How is the economic model of your project designed?
Hung Vu: It is a Revenue Share/"Real Yield" Model.
Radiant Protocol token holders are rewarded with a Real Yield in receiving 60% of borrowing interest on the platform. This means that in exchange for staking RDNT or RDNT LP tokens, they will receive rewards in the form of BTC, ETH, BNB, and stablecoins such as BUSD, USDC, and USDT. The APR paid in "blue chip assets'' has averaged 60-100% APR over the last six months for locking RDNT.
Since its launch in July, only deployed on Arbitrum, the protocol has generated and paid out $5.2M in protocol fees.
Jone Zee: What are the next steps in Radiant's development plan?
Hung Vu: We have two tracks or aspects of the road map from near to intermediate terms. Adding new collateral support to drive more revenue and s-chain functionality:
In v1, Radiant was intentionally super conservative on collateral (3crv + BTC/ETH) as we saw tons of money markets blow up with poor risk parameters or improper collateral params (even Aave was exploited in this way)
In v2, Radiant will work to add new collateral options in lend-only markets (at first) to expand your x-chain borrowing power further. For ARBI, think GLP/MAGIC/STG/etc. where you could collateralize those tokens and then borrow on BNB Chain (if you so choose). These will all be done with hyper-conservative parameters to let the markets scale safely, and working with w/a number of advisors on this.
Currently, on v1, you can go into Radiant on Arbi, and borrow on Avalanche using LayerZero messaging in a couple of minutes or less.
With v2, you can have several new "home chains" where you can deposit collateral. The first new deployment of Radiant on v2 will be on BNB Chain by March 23rd this year.
On v2, we're also expanding this to include a new set of collateral assets. Borrow against your ARBI MAGIC on Mainnet or get additional leverage on ARBI to lever up!
Jone Zee: What is Dopex?
Tz: Dopex is a decentralized options protocol that provides maximum liquidity for option buyers with minimal exposure for option writers.
Dopex aims to provide this by providing retail-friendly option products for buyers and "safer" option strategies for option writers with defined risks. We also provide simple options strategies for option buyers - using our flagship "Single staking option vault" product or SSOVs, Straddles, Atlantic Options, and more.
We are also focused on launching products to power DeFi infrastructure using Options in the background — OpFi. This will be the best way for DeFi to use options since users would never even need to know they're using Options, while it helps them with insuring their futures positions on GMX, creating synthetic perps, creating lending markets, etc.
Dopex also has a two-token system with a rebate token called rDPX (which we just launched a testnet for today). rDPX will be used to mint rebates for option writers when option writers face losses.
This has been in development for a while to create a sustainable, scalable version of the rebate system, and it's near ready now for mainnet - which means soon option writers will be able to have the best venue to write options (on Dopex) considering the rebates on losses incurred.
We've done over $350 million in open interest so far. We have around $60 million in TVL today. We look forward to seeing this rise considerably with organic adoption from new members using the protocol with initiatives like this, where KuCoin members get exposure to the wonderful world of OpFi.
Hung Vu: For some of us who are not too advanced, what are the advantages of trading options, and include the cutting-edge features that you and your competitors support
Tz: Unlike perps or spot trading, Options help you achieve potentially unlimited rewards on a predefined risk, usually within a set period.
Our SSOV products are used to write covered calls/puts. As a writer, you can lock your assets, and have it staked natively within the asset's staking contracts for a native yield plus, anytime a buyer wants to purchase an option - it collects a premium.
From the writer's perspective, this is safer than selling under-collateralized options and can be used as a passive investment strategy since you collect both native staking yield on the collateral asset and premiums from buyers purchasing the options.
As for the cutting-edge features, for buyers, apart from the pre-defined risk mentioned above, with OpFi, we're also integrating options so buyers can use their options to help with other useful things within the DeFi ecosystem - using Atlantic options. These are simply options that allow the buyers to borrow the collateral within the option. An example, with our insured perps product, you can open up to a 10x leverage long on GMX and the contracts:
- Purchase put options right above your liquidation price
- Borrow the collateral and deposit it into the position.
This means your 10x leveraged long can never get liquidated!
We also extend Atlantic options to other products, like put-based lending, straddles, scalps, and more. You can read my article on medium about the future of OpFi below.
Host: What products are currently live, and how do these work?
Tz: We currently have a pretty big suite of products live:
Our flagship SSOVs with over 15 markets live now - these are used to sell covered calls/puts to buyers while earning a native staking yield for the entire time the assets are locked within the vault.
- Option Liquidity Pools - since SSOV options are European and can't be exercised until expiry, these help with mid-epoch liquidity
- Atlantic Straddles allow users to speculate on volatility in either direction for assets over very short expiries (2 days) powered by Atlantic options.
- Atlantic Insured Perps - Insured leverage long positions on GMX with upto 10x leverage
- veDPX - Vote escrowed DPX that is to be used for Governance and voting on parameters within the protocol
- rDPX V2 - which just went live today on testnet (https://rdpx.io), is the rebate token and will allow for synthetic assets to be minted on Dopex
We also have a few more products coming out very soon:
- Option scalps - Open scalp positions for up to 1h by paying a small premium and posting a minimal margin. Options power them. This has a relatively safe risk profile for writers considering asset appreciation is derived from swapping USD deposits into the actual collateral asset, making writing for scalps pretty lucrative.
- 1-day to expiry options - Options with anytime withdrawals for writers, and comes with a wide variety of assets.
- Put-based lending - is an option-based lending product with fixed expiries and no liquidations!
You can read more about them in the medium articles and within Dopex academy and Dopexpedia, which you can find on our official website.
Host: What is the GMX exchange?
Jone Zee: GMX is a decentralized, permissionless perpetual swap and spot exchange. So not a centralized exchange (CEX), but a decentralized exchange (DEX).
Traders can use it to easily trade cryptocurrency like BTC and ETH on-chain just by connecting their wallets. For example, MetaMask, Coinbase Wallet, or similar popular self-custody wallets that support WalletConnect. They can use GMX for swaps as well as leverage trading.
Our native token, also called GMX, functions as a governance, utility, and value-accrual token for the GMX exchange. Users can stake GMX tokens and earn a portion of GMX's protocol fees for just 30% of all fees!
The GMX DEX is currently live on the Arbitrum and Avalanche blockchain networks
Host: What are the advantages of trading and providing liquidity on GMX?
Jone Zee: Here are a few very important advantages the GMX exchange offers:
● Traders benefit from zero price impact. That means trades are fully executed directly at the oracle price, so you save on fees. Slippage and spread are minimalized.
● Liquidity on GMX is remarkably deep. There are over 500 million USD available in our two GLP liquidity pools, Arbitrum and Avalanche, for users to trade with.
That even allows whales to trade on-chain with 100 million $ positions effectively, transparently, and securely. You can visit https://stats.gmx.io/ to see the amazing growth GMX has experienced over the last year.
GMX offers reduced liquidation risks compared to leverage trading on centralized exchanges. This is because we use an aggregate of high-quality price feeds to determine when liquidations occur. This smoothes out fast and extreme price movements, which keeps your position safe from temporary wicks! We all know how awful it feels to get liquidated on a wick.
As for providing liquidity as a GMX user and why it can be attractive:
Trading on GMX is facilitated by a multi-asset pool called GLP. It consists of 50-55% stablecoins, 25% ETH, 20% BTC, and 5-10% other altcoins, such as Chainlink and Uniswap, or AVAX on the Avalanche blockchain. Holding GLP is a bit like a crypto Index fund. You are 50% long on the crypto market, and 50% in stablecoins, plus you earn great yield.
The liquidity for GMX is added when users mint these GMX Liquidity Provider Tokens (GLP). In exchange for minting GLP, they earn 70% of all fees generated on that particular blockchain. Also, contrary to some liquidity pools, GLP suffers no impermanent loss.
Anyone can become a supplier of this GLP liquidity pool and, in return, earn fees. And users who want to trade perpetual swaps or spots can do that using the assets provided!
Host: What further developments are coming to GMX?
Jone: GMX has some amazing things coming up in the next 4-8 weeks!
We are launching GMX Version 2 soon. The developers have worked on this for much of the year, based on the experiences of the last year and a half, and GMX V2 is a massive update to the trading protocol.
● It will allow many new tokens to be listed and traded. Like your favorite altcoins and even non-crypto assets
● It will come with new and improved Chainlink price feeds that are even more exact and reliable—further improving the trading experience for DEX traders.
● It will include a new liquidity model alongside GLP, with isolated pools for these new assets. This means that liquidity providers can choose their exact risk profile.
V2 has gone through four audits and is currently in the final audit. We take security very seriously. Once GMX V2 has successfully launched, the GMX DAO will discuss additional blockchains to deploy.
GMX V2 will feature a few more innovative aspects that have to remain a secret for now, so it's best if you stay current with our newsletter. Rest assured; we're excited to bring this to market and see the response!
Those were the things that the community should also look forward to tremendously. So we have some very exciting months ahead of us!
Free-Ask from KuCoin Community
Q: What benefits would RDNT provide to its holders?
Hung Vu: RDNT utility includes governance and locking for real yields (80/20 RDNT/wstETH LP mitigates IL and gets you close to single-sided lock), which earns from 60% of the protocol fees. You can also participate in whichever EVM-compatible chains we support
Q: What is the income model of RDNT, and what are your next undertakings?
Hung Vu: Fees come from borrower interest, flash loans, and liquidations, and with v2, the protocol's emissions only go to those aligned with the project's growth. We are adding 20+ new safe collaterals to drive up revenue. Emissions have been extended from 2-5 years accordingly, and even before v2 is live, Token Terminal rated us with the lowest price/fee ratio due to this DeFi 3 focus.
Q: What are the main killer features of Radiant Capital?
- Outsized real yield in hard assets.
- Omnichain use cases, unlocking and unifying 20b across siloed chains.
- Sustainable DeFi 3.0 model.
Q: How do you work on your UI?
Q: How are you feeling now as you reflect on the day you started this project?
Tz: There's always room for growth. However, considering the bear market and what was unwinded in the second half of 2022, we're satisfied with what we've been building. 2023 should be a better year for user acquisition and usage after falling out from the subsides of 2022.
Q: Since NFT is popular nowadays, is there a plan for NFT integration?
Tz: Yes, we already have NFTs used within Dopex, such as "bridgoors," which allow holders to purchase 20% discounted DPX bonds monthly. We also have a sister NFT project, "Diamond Pepes," - which is a thing of its own. You should check it out.
Q: What are the benefits of holding GMX as a long-term investment?
Jone Zee: GMX has, from the start, focused on building an engaged community for the long term. Our staking model also represents this:
● Stakers earn 30% of all protocol fees, resulting in a high APR
● Stakers additionally earn Multiplier Points, which incentivize long-term holding and amplify your rewards
● esGMX rewards, escrowed GMX tokens, were earned by GMX Stakers and GLP liquidity providers. These tokens earn rewards but cannot be directly sold. They require 365 to vest, which decreases downward pressure on the Token price.
The tokenomics of GMX incentivize holders and a long-term perspective. As a result, inflation is very limited, and revenue is growing fast.
Q: How can I keep myself updated on GMX?
Jone Zee: We would love to welcome you all to join the GMX community. We're a friendly, supportive bunch that is happy to help you with any questions.
Official Website: Website: https://gmx.io/
Trade GMX: https://app.gmx.io/#/trade
Telegram News Channel: https://t.me/GMX_Announcements
Telegram Discussion Group: https://t.me/GMX_IO
Connect with us!
KuCoin Post AMA Activity — Arbitrum Ecosystem
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The form will remain open for five days from publishing this AMA recap.
KuCoin and several Arbitrum Ecosystem projects have prepared a total of $2,000 worth of tokens to give away to AMA participants.
1. Pre-AMA activity: 1,440 RDNT
2. Free-ask section: 180 RDNT
3. Flash mini-game: 1,440 RDNT
4. Post-AMA quiz: 2.6 DPX & 540 RDNT
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