Binance Labs, the venture capital arm of Binance, has invested $10 million in Radiant Capital, a decentralized finance (DeFi) lending and borrowing protocol built on LayerZero Labs architecture. The funds will be used for tech and product development, including expanding collateral and deployment on the Ethereum mainnet. Radiant aims to address DeFi's fragmented liquidity issue by enabling cross-chain asset deposits and borrowing through its money market.
Binance Labs, the venture capital arm of the world's largest cryptocurrency exchange, Binance, has made a strategic investment of $10 million in Radiant Capital, a decentralized finance (DeFi) lending and borrowing protocol. The investment will primarily be allocated towards technological enhancements and product development initiatives, including the expansion of collateral options and deployment on the Ethereum mainnet.
Radiant Capital leverages architecture from LayerZero Labs, another portfolio company of Binance Labs. The lending platform aims to address the fragmented liquidity challenges prevalent in the DeFi ecosystem by serving as a money market that facilitates deposits and borrowing of assets across various blockchain networks.
Traders, referred to as Dynamic Liquidity Providers, can stake the native RDNT token to generate revenue from interest accruals and flash loan fees. Additionally, they wield governance authority within the Radiant DAO. The protocol distributes its platform fees in a combination of Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and stablecoins.
According to DeFi Llama data, Radiant Capital currently holds approximately $265 million in total value locked. The platform supports over 20 collateral options, with plans to expand this range further as the Radiant DAO extends its functionalities to additional blockchain networks.
"Radiant Capital's unwavering commitment to enabling seamless cross-chain transactions for DeFi, coupled with its impressive performance on Arbitrum and BNB Chain, underscores its potential to drive widespread adoption," remarked Yi He, co-founder of Binance and head of Binance Labs, in an official press release.
The Radiant platform is built on the interoperability and cross-chain messaging infrastructure of LayerZero, which recently secured $120 million in funding at a $3 billion valuation in April of this year.
Upon the announcement of Binance's investment, the price of Radiant Capital's RDNT token experienced a significant surge of over 10%, reaching 31 cents.
This investment adds to Binance Labs' growing portfolio of DeFi projects, reflecting the company's commitment to supporting innovation and growth within the decentralized finance sector. Radiant Capital's focus on cross-chain interoperability and the expansion of collateral options aligns with Binance Labs' strategic vision of fostering a more interconnected and accessible DeFi ecosystem.
