Binance Labs Invests $10M in Radiant Capital to Expand Its Cross-Chain Lending and Borrowing Protocol

The venture capital arm of Binance has invested $10 million in Radiant Capital, a decentralized finance (DeFi) lending and borrowing protocol.

Cryptocurrency exchange Binance’s venture capital arm has invested $10 million in Radiant Capital, a decentralized finance (DeFi) lending and borrowing protocol.

The new funds will be used to develop technology and products, including expanding the range of collateral and deploying on the Ethereum mainnet, a statement said on Wednesday.

Radiant is built on technology from LayerZero Labs, another portfolio company of Binance Labs. The lending platform aims to solve the problem of fragmented liquidity in DeFi by creating a money market where users can deposit and borrow assets across multiple chains.

Traders, called Dynamic Liquidity Providers, can lock in the native RDNT token to earn a share of the interest and flash loan fees and participate in governance as a member of the Radiant DAO.

The protocol pays out a portion of its platform fees 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, currently supports over 20 collateral options and plans to add more 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,” Yi He, co-founder of Binance and head of Binance Labs, said in the statement.

Radiant is built on the interoperability and cross-chain messaging technology of LayerZero, which raised $120 million in April at a $3 billion valuation.

Tokens of Radiant Capital (RDNT) rose over 10% to 31 cents following the news of the Binance investment.