Today I would like to open discussion in our DAO about support for Reaper Farm’s Radiant Vault with the V2 release of Radiant. As many of you know, according to RFP #4, Radiant plans to implement “dynamic-liquidity” which means you need >= 5% worth of your deposits in provided liquidity to the protocol to receive Radiant emissions.
Now, here’s where our good friend Reaper Farms comes in to the picture. Reaper Farms offers auto-compounding vaults where you can deposit any one of the 5 currently supported tokens by Radiant. Reaper Farms sells any Radiant emissions earned by the deposit and converts it to the principal currency and adds it back onto your principal. Reaper Farms may also loop your deposit if it is profitable.
RFP #4 raises a problem for this system, because Reaper Farms has no way to verify that it is working for an individual that has provided liquidity to the Radiant protocol. I’m bringing this topic forward for you all to incite discussion and see if this is something the DAO would like to pursue in V2.
If anyone has any questions feel free to reach out to me on Discord: lechasseur77#6511
Protocol mechanics updates shouldn’t take vaults into much consideration- the updates are meant to improve the sustainability and utility of Radiant. While the DAO should appreciate Vault partners like Reaper Farm, there will always be opportunities to adjust their strategies. I could see vaults still benefiting from future changes by auto-converting ~5% of a user’s deposit into dLP to maintain eligibility and auto-rebalancing strategically with a DCA strategy. Pooling their users’ resources together can be more capital efficient than everyone doing this separately. Other options would be for Reaper farm to invest in dLP and charge an ‘entrance’ fee for their users to benefit from the RDNT emissions. Plenty of options that are ultimately up to each vault partner.
Yeah, understand where we want to be in the market, build it well, bring a ton of value, be a force in the wild, and projects like aggregators and yield optimizers will find ways to ride the coattails of successful projects to extract value for their customers and themselves
Appreciate your post giving the DAO the opportunity to talk through this aspect of things and gaining some shared context.