Binance, the world’s largest cryptocurrency exchange, has invested $10 million in Radiant Capital, a decentralized finance (DeFi) lending and borrowing protocol. The funds will be used to develop the platform’s technology and product, including expanding collateral and deployment on the Ethereum mainnet. Radiant is built on the architecture of LayerZero Labs, another Binance Labs portfolio company.
Radiant Capital’s commitment to facilitating seamless cross-chain transactions for DeFi, and performance on Arbitrum and BNB Chain demonstrates its potential for driving mass adoption, said Yi He, co-founder of Binance and head of Binance Labs.
Radiant is designed to tackle DeFi’s fragmented liquidity problem by serving as a money market where users can deposit and borrow assets across multiple chains. Traders, known as Dynamic Liquidity Providers, can lock in the native RDNT token to profit from interest and flash loan fees and have governance authority within the Radiant DAO. The protocol’s platform fees are paid out in Bitcoin (BTC), Ether (ETH), BNB Coin (BNB) and stablecoins.
Radiant currently has about $265 million in total value locked, according to DeFi Llama data. The platform supports more than 20 collateral options and plans to add new options in the future as the Radiant DAO expands the functionality to additional chains. Tokens of Radiant Capital RDNT jumped over 10% to 31 cents after the news of Binance’s investment.