The venture capital arm of Binance has invested $10 million in Radiant Capital, a decentralized finance (DeFi) lending and borrowing protocol.
The new funds will go toward tech and product development, which includes expanding collateral and deployment on the Ethereum mainnet
Radiant is built on architecture from LayerZero Labs, another Binance Labs portfolio company. The lending platform aims to take on 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, which 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.
"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, in the press release.
Radiant was built on the interoperability and cross-chain messaging infrastructure of LayerZero, which raised $120 million in April at a $3 billion valuation.
Tokens of Radiant Capital RDNT jumped over 10% to 31 cents after the news of Binance's investment.
UPDATE (July 20, 13:03 UTC): Adds RDNT token move in last para. Updates headline.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.