🛡️Radiant Guardian
A DeFi first in combining real protection, real yield, and real composability
Radiant Guardian represents a new security primitive in DeFi — the industry’s first protocol-native, non-idle, decentralized, auto-remediating, and DeFi composable, institutional-grade reserve fund. Ratified through community governance via RFP-52, Guardian transforms the way capital protection and remediation are structured in decentralized finance.
What is Radiant Guardian
Guardian is a built-in economic safety net inside Radiant Capital that can be enabled by locking dLP. It is a fund + token mechanism that:
Protects users’ deposits if something bad (an exploit) happens.
Makes that protection fund productive rather than just sitting idle.
Shares risk and reward between people who want protection and people who supply capital to the protection fund.
Key parts
Guardian Fund
The reserve pool where protection capital is stored (ETH, wstETH, RDNT, etc.)
It holds assets that can be used to remediate users when there is a qualifying exploit. It’s governed transparently by DAO rules.
dLP (DynamicLP)
Liquidity provider tokens for RDNT/ETH or RDNT/BNB that users must lock.
If you lock a certain amount (≥15% of your deposited amount) in dLP, you become eligible for Guardian protection.
gLP (GuardianLP)
An LP token you receive by putting ETH (or equivalent) into the Guardian Fund.
It represents a share of the protection fund. gLP earns yield (from protocol revenue, staking, etc.), but also takes on the slashing risk: if there’s remediation to users after an exploit, gLP holders may get “slashed” (lose some of their stake) to cover those losses.
Automatic Remediation Engine
The logic / algorithm that triggers remediation.
If an exploit that’s “covered” occurs, users who locked enough dLP are automatically remediated from the Guardian Fund (proportionally). gLP holders share the cost.
How it works — step by step
User wants protection Alice deposits money (say ETH) into Radiant’s lending markets. To be eligible for Guardian’s protection, she also locks dLP tokens equivalent to ≥15% of her deposit.
Capital supply for protection Bob (a more risk-tolerant user) puts ETH into the Guardian Fund and receives gLP tokens. That ETH goes into the fund and is used in safe strategies to earn yield.
Normal operation / earning yield The assets in the Guardian Fund (via gLP capital) are not idle: they are used in conservative, low-risk strategies and also get a share of Radiant’s revenue (10%) to generate returns. Meanwhile, gLP is a token that can be used across DeFi.
If a qualifying exploit happens Suppose there is a hack or bad contract bug, and some users lose funds.
The Guardian remediation engine kicks in.
Alice, who had locked enough dLP, gets remediated from the Guardian Fund. The distribution s proportionate to her loss (capped at 100%).
To pay that, some portion of the Guardian Fund is used. As gLP holders had contributed capital, they share in that cost: i.e. their holdings are “slashed” (reduced) to cover part of those remediation.
Balancing rewards and risk
gLP holders are rewarded (yield, revenue shares) in “good times.”
But they take on risk: if an exploit happens, their funds can be partially used.
Users needing protection must lock dLP to qualify.
Radiant Guardian effectively creates a decentralized risk marketplace where risk is transparently priced and rewarded. gLP holders act as the market’s underwriters, they supply capital to the Guardian Fund, earn yield for assuming risk, and may incur losses if a covered exploit occurs.
This dynamic setup aligns incentives: users seeking protection contribute by locking dLP, while those willing to bear risk are compensated through gLP rewards. The result is an on-chain system that accurately prices, shares, and rewards risk across the Radiant ecosystem.
Examples
Example A: Small user + small exploit
Alice deposits 100 USDC into Radiant’s markets.
She locks 15 USDC worth of dLP (15% of 100) to be eligible for Radiant Guardian.
Bob deposits 10 USDC into the Guardian Fund and mints gLP; this helps grow the fund with yield.
Later, a bug causes Alice to lose 5 USDC in Radiant.
The remediation engine automatically pays her 5 USDC from the Guardian Fund.
That 5 USDC comes from the capital held by gLP holders like Bob, Bob’s gLP is reduced by some amount to cover this payout.
Example B: Big exploit, partial coverage
Charlie deposits 200 ETH, locks 30 ETH in dLP.
There is 100 ETH in the Guardian Fund total (DAO depsoits + user deposits).
The Guardian Fund doesn't have enough capital to fully cover Charlies’ losses.
The system pays Charlie proportionally (50% of their loss) 100 ETH.
In other words, Guardian doesn’t guarantee full coverage beyond what the fund can afford.
gLP holders take the hit: part of their capital is used (slashed) to pay the partial remediation.
Example C: Good times, yields
There is no exploit. The Guardian Fund is growing via yield strategies, plus Radiant gives 10% of protocol revenue to the fund.
Bob, holding gLP, receives returns. His gLP is stable or growing.
Alice keeps her deposit safe (no exploit), because there was no need for remediation.
Why Radiant Guardian is different
Traditional safety funds: many protocols set aside capital (reserves) but those funds sit idle (not doing anything) until disaster strikes. Radiant Guardian makes those funds active, earning yield.
User-first protection: instead of just protecting the protocol, this system aims to protect individual users’ deposits.
Incentive alignment: those who supply to the protection fund (gLP holders) are rewarded for risk, and those who want protection (depositors) must also show commitment (via dLP locking).
DeFi Composability: gLP is a standard DeFi token, meaning it can be used across DeFi (as collateral, liquidity, etc.), it doesn’t just sit in the fund unused.
GuardianLP (gLP) Core Design
Guardian introduces a yield-bearing token, the GuardianLP (gLP), as the backbone of Radiant’s economic security framework. Unlike traditional reserve pools that remain idle until triggered, Guardian actively deploys its reserves into low-risk strategies to generate sustainable yield while maintaining instant liquidity for emergency exploit-related remediation (source).
Key properties:
Non-Idle Capital — By holding gLP, the reserves earn yield instead of sitting dormant (10% from protocol revenue + native yield of base asset/s + DAO gLP burns)
Auto-Remediation — user remediation is automatically triggered based on community-governed policies and algorithms.
DeFi Composable — ERC-20 compatible, gLP integrates with DeFi ecosystems as collateral, liquidity, and settlement layers, starting with Radiant's own Isolated RIZ (Radiant Innovation Zone) Markets.
Institutional-Grade — built with transparency, on-chain auditability, and governance-aligned parameters
Governance Alignment
Guardian’s parameters — such as protection scope, capital deployment strategies, and remediation mechanics — are controlled by the DAO, ensuring community-aligned security guarantees. This design turns risk management from a passive promise into an active, protocol-native treasury function (source).
Strategic Significance
First in DeFi: Guardian is the first decentralized framework to blend coverage with capital efficiency.
Resilience: Protects users while reinforcing Radiant’s long-term protocol sustainability.
Institutional On-Ramp: By aligning real yield and automatic user protection, Guardian opens the door for institutional participants seeking real protection, real yield, and real composability.
References
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