Radiant Capital STIP.B Bi-Weekly Update 1 [07/01/2024]
Recap of the Previous Two Weeks
Radiant has started STIP with strong TVL results, in large part thanks to collaborations with Ether Fi, Magpie, GMX, and Lido. Radiant has the highest 7d TVL growth among top-ranking protocols on Arbitrum at 18%, followed by Magpie, which utilizes Radiant money markets. Radiant is thankful to the Arbitrum DAO for providing the grant. Radiant will strive to achieve the most optimal results while being efficient with grant incentive usage.
ARB Received Last Disbursement: 1,426,022
ARB Utilized as Incentives in the Last Two Weeks: 164,573
Contracts incentivized over the last 2 weeks:
Merkl distributor: 0x3ef3d8ba38ebe18db133cec108f4d14ce00dd9ae
Radiant receipt tokens incentivized via Merkl:
Ether Fi rweETH [lenders]: 0xb11A56DA177c5532D5E29cC8363d145bD0822c81
**Ether Fi vdweETH [borrowers]:**0x2D7d510Dc21F5384C9efd30811D0366F8b4269DF
GMX v2 rgmBTC: 0x876f38f474e48a104c4af4f06ca488099c436c93
GMX v2 rgmETH: 0xd15a6568dc891fd04aa2f64af56c66c2bede59d6
Magpie Incentive multisig (wstETH & USDC Incentives): 0x294a419eb4c5ddd2dd7fb3161489afc5eed9780a
Contract address label Form 45 completed for all addresses: YES
ARB left over: 1,261,449
Plan for leftover ARB:
1. weETH (416,666 ARB)
The weETH market incentives have been live for the past two weeks and have shown remarkable performance. To date, Radiant has received over 5,790 weETH in deposits, equivalent to $20.85 million at the time of writing, and over 2,780 weETH in borrows, valued at $10 million.
Since the initiation of STIP rewards, the total value locked (TVL) for weETH has surged from 1.79k weETH to 3.04k weETH, marking a significant increase of approximately 70% in TVL.
Source: https://defillama.com/protocol/radiant-v2#tvl-charts
Beyond the STIP incentives allocated to the market, Radiant’s collaboration with EtherFi has introduced a 3x multiplier for both lenders and borrowers in EtherFi points. This collaboration has significantly enhanced the market’s incentive structure, offering attractive yields and additional rewards from EtherFi and EigenLayer.
As a result of these efforts, the Radiant weETH contract is the third-largest holder of weETH on Arbitrum in a matter of weeks, following only Aave and Pendle.
Source: https://arbiscan.io/token/0x35751007a407ca6feffe80b3cb397736d2cf4dbe#balances
Following a thorough analysis and recommendations from Chaos Labs, Radiant increased the borrowing capacity from 1,600 weETH to 3,200. Consequently, Radiant will adjust the incentive distribution from an 80-20 split to a 75-25 split between lenders and borrowers. This adjustment should enhance borrowing incentives without penalizing or discouraging deposits.
2. Radpie wstETH vault (104,166 ARB)
The wstETH market incentives have been running for the past week, initially supported solely by Radiant’s incentives. Thanks to an upcoming collaboration with Lido, who will match Radiant’s incentives for the market, Radiant expects a substantial increase in market participation.
This wstETH initiative is carried out on Radpie due to its unique ability to create vaults with automatic 3.46x looping, which was desired by Lido to co-incentivize the market.
Since the introduction of these incentives, there has been a clear increase in TVL, bolstering our confidence that the market will perform exceptionally well once the total planned incentives from both Radiant and Lido are in full effect. Prior to the initiative, the TVL stood at approximately $408k, and as of now, it has surged to $2.4M, marking an impressive growth of 490%.
Source: https://dune.com/radiant/arbitrum-stip-bridge
Radiant and Lido will assess the campaign’s results after 30 days and determine whether to continue as planned or make adjustments.
3. GMX v2 gmBTC & gmETH (346,666 ARB)
Both markets launched two weeks ago as collateral-only, allowing GMX v2 users to unlock the borrowing power of their positions.
Before the STIP rewards initiation, gmBTC and gmETH had a total TVL of $372k and $288k, respectively. Since the incentives went live, gmBTC has increased to $1.17M, and gmETH has increased to $1.9M, resulting in a 365% combined increase in TVL for both markets.
Radiant decided to kick off the campaign by lowering the initial ARB amount stated in the proposal for the first week to assess user behavior.
Collaborating closely with GMX will be crucial for the success of these markets. Therefore, a space on the X social network has been coordinated for Monday, July 1st. Radiant protocol will provide additional incentives before the event to gauge market reaction.
4. Radpie USDC lenders (120,000 ARB)
The recent bull market has led to Radiant users choosing to de-prioritize holding stablecoins such as USDC, preferring leverage and volatile assets. This stance has led to a decrease in USDC lenders, causing USDC borrow rates to spike.
Recognizing the need to stabilize these rates, Radiant is prioritizing efforts to enhance the native USDC market, in alignment with the goals of Arbitrum, Gauntlet, and Circle to foster greater adoption of this asset.
This effort is being carried out through Radpie, leveraging previous STIP initiatives that incentivized stablecoin pools and yielded favorable outcomes. The initiative has already shown outstanding results within the first two days, with an initial TVL of 2.9M growing to 5.3M, reflecting an 82.75% increase. These promising outcomes reinforce Radiant’s confidence in enhancing market stability and promoting broader adoption of native USDC on Arbitrum.
5. Radiant v3 (RIZ): Isolated lending - USDC vault (238,524 ARB)
The incentives are not active yet, as the launch is estimated for July.
6. Radiant v3 (RIZ): Isolated lending - assets (200,000 ARB)
The incentives are not active yet, as the launch is estimated for July.
Check out the Radiant v3 teaser on YouTube!
https://youtu.be/8d4lp17qg_I?si=BQXxzeAta7Zl7Mpl
Summary of incentives:
- weETH (416,666 ARB)
- Radpie wstETH vault (104,166 ARB)
- GMX v2 gmBTC & gmETH (346,666 ARB)
- Radpie USDC vault (120,000 ARB)
- Radiant v3 (RIZ): Isolated lending - USDC vault (238,524 ARB)
- Radiant v3 (RIZ): Isolated lending - assets (200,000 ARB)
Radiant DAO has prepared a detailed document to track the incentives. Check it out here: https://docs.google.com/spreadsheets/d/1EDNd5G4K9u0z6sf5zmERycYff0Pwj9p9Zm0-ostPcrQ/edit?usp=sharing
Additional Info / Disclosures to Multisig: None.
STATS
Average daily TVL: $63.1M
https://defillama.com/protocol/radiant#tvl-charts
Average daily transactions: 21,819
https://dune.com/queries/3888020
Average daily volumes: data pending
Number of unique user addresses: 280,658
https://dune.com/queries/3888010/6535104
Transaction fees: 06/19 - 07/02 $14,053
https://dune.com/queries/3879009/6523815
Link to Dashboard showing metrics: https://dune.com/radiant/arbitrum-stip-bridge
Plan For the Next Two Weeks
Amount of ARB to be distributed: 133,874
Contracts that will be incentivized:
rweETH [lenders]: 0xb11A56DA177c5532D5E29cC8363d145bD0822c81
vdweETH [borrowers]: 0x2D7d510Dc21F5384C9efd30811D0366F8b4269DF
rgmBTC: 0x876f38f474e48a104c4af4f06ca488099c436c93
rgmETH: 0xd15a6568dc891fd04aa2f64af56c66c2bede59d6
Radpie: 0x294a419eb4c5ddd2dd7fb3161489afc5eed9780a
Contract address label Form 45 completed for all addresses: YES
Mechanism for distribution incentives:
-
Angle’s Merkl: 0x3ef3d8ba38ebe18db133cec108f4d14ce00dd9ae \
- weeth
- gmBTC
- gmETH
-
Radpie Treasury Multisig: 0x294a419eb4c5ddd2dd7fb3161489afc5eed9780a \
- wsteth
- USDC
Radiant will disclose the incentive mechanism for Riz USDC and Riz assets once they go live.
Summary of incentives plan:
1. weETH (64,102.46 ARB)
This initiative is in progress. As detailed earlier, due to increased borrow capacity, Radiant has adjusted from an 80-20 split between lenders and borrowers to a 75-25 split.
2. Radpie wstETH vault (17,361 ARB)
This initiative is in progress. Lido’s incentives are expected to be active alongside Radiant’s in the coming weeks.
3. GMX v2 gmBTC & gmETH (57,571.80 ARB)
This initiative is in progress. Radiant DAO expect that the collaboration with GMX will promote growth in both markets. Incentives will be adjusted based on observed performance.
4. Radpie USDC vault (60,000 ARB)
This initiative is in progress and will continue until July 24th.
5. Radiant v3 (RIZ): Isolated lending - USDC vault (0 ARB)
No incentives until RIZ launch.
6. Radiant v3 (RIZ): Isolated lending - assets (0 ARB)
No incentives until RIZ launch.
Summary of changes to the original plan:
Reallocation of Isekai & Reduction of GMX V2 Initiatives:
The only changes made to the original proposal involve reallocating tokens originally earmarked for these two initiatives towards the native USDC lending incentive, for the reasons outlined above.
-
Reallocation of Isekai Initiative: Incentives originally allocated to Isekai have been redirected to native USDC lending following Isekai’s decision to cease operations.
-
Reduction of GMX V2: As mentioned earlier, lower-than-expected adoption of GMX markets prompted a decision to reallocate a total of $70,000 (divided equally between gmBTC and gmETH) towards incentivizing USDC on Radpie.
This adjustment includes $50,000 originally allocated for Isekai and $70,000 from the GMX markets, bringing the total reassigned amount to $120,000 for the USDC market.
This STIP program will run until July 24th.