# What's New in v3

Radiant v3 is not just an upgrade — it’s a **transformation**. Built on the foundations ratified by the community ([RFP-28](https://snapshot.box/#/s:radiantcapital.eth/proposal/0x349c3a829823d5fb22a2e1a8e3a48c2a844b90a96680d9b262b932c0ee447088), [RFP-48](https://snapshot.box/#/s:radiantcapital.eth/proposal/0xd2159dc33d032b03345ac15b6fa13d95103657e053bd7abf5f994b858a0328ec), [RFP-51](https://snapshot.box/#/s:radiantcapital.eth/proposal/0xfeb2cc5bc3e1e00ec6cbe9a49b46081c37df5928172c2b0da8a7f48194b59924), [RFP-52](https://snapshot.box/#/s:radiantcapital.eth/proposal/0x8b69c2535698b6a93b383dcba4c84e4174e65a7b1535c6b66ccf2ae481d88b86)) and anchored by the launch of the [Guardian Fund](https://medium.com/@RadiantCapital/radiant-guardian-defi-security-reimagined-6fd5c4d96da7), v3 ushers in a **new institutional-grade era** for Radiant Capital. It combines **innovative primitives (isolated RIZ markets, composable GuardianLP), hardened security post-exploit, and true community governance (DeFi’s first elected Community Council)** into a single coordinated protocol stack.

***

### Table of contents

1. [Key features](#id-1.-key-features)
2. [Architecture & primitives](#id-2.-architecture-and-primitives)
   * [Isolated RIZ Markets (Radiant Innovation Zones)](#isolated-riz-markets-radiant-innovation-zone)
   * [Guardian Fund & GuardianLP (gLP)](#guardian-fund-and-guardianlp-glp)
   * [Competitive Dynamic Reserve Factors](#competitive-dynamic-reserve-factors)
   * [Weighted Emissions Allocation Model](#weighted-emissions-allocation-model)
   * [Reduced RDNT Inflation](#reduced-rdnt-inflation)
   * [Dynamic Revenue Distribution](#dynamic-revenue-distribution)
3. [Governance & community controls](#id-3.-governance-and-community-controls)
4. [Smart contract & security notes](#id-4.-smart-contract-and-security-notes)
5. [Parameter table (v3 defaults & meanings)](#id-5.-parameter-table-v3-defaults-and-meanings)
6. [References & further reading](#id-6.-references-and-further-reading)

***

## 1. Key features

* **True Community Governance, a first in DeFi** — implemented as an integrated stack of Discourse discussion boards, Snapshot voting, and an annually elected Community Council that executes DAO-level responsibilities.
* **Isolated RIZ Markets (Radiant Innovation Zones)** — market-level isolation that lets Radiant list many assets while keeping risk isolated from Core Markets.
* **Guardian Fund & GuardianLP (gLP), a first in DeFi** — a community-governed automated remediation fund and a liquid, yield-bearing LP token that represents protection capital and earns protocol revenue.
* **Competitive Dynamic Reserve Factors** — per-market reserve factors that can be adaptively tuned to market conditions and competitiveness across chains/markets.
* **Reduced RDNT Inflation** — a new economic paradigm that throttles baseline RDNT emissions while introducing weighted, usage-aligned incentives.
* **Dynamic Revenue Distribution** — protocol revenue is distributed on a dynamic schedule to stakeholders, security funds, incentives, and the DAO itself.
* **Weighted Emissions Allocation Model** — emissions become a configurable, weight-driven allocation to markets (favoring long-term aligned participants and RIZ adoption).

## 2. Architecture & primitives

This section explains the primitives and how they interact.

### Isolated RIZ Markets (Radiant Innovation Zone)

**What:** RIZ are *isolated market containers* that enable Radiant to list and support many assets while capping systemic risk. Each RIZ has its own collateral rules, interest model, reserve factor cap, and liquidation/health parameters.

**Why:** Listing many assets increases utility but also increases correlated risk. Isolation means a single asset can’t create bad debt for other markets or drag the whole protocol into insolvency.

**Mechanics:**

* Each RIZ implements market-level parameters: `maxLTV`, `liquidationThreshold`, `reserveFactorBounds`, and `marketUtilizationTarget`.
* Core markets (e.g., highly-audited assets) get looser parameter bounds and wider collateral limits; experimental RIZ markets have stricter caps and greater guardrails.

### Guardian Fund & GuardianLP (gLP)

**What:** The Guardian Fund is a community-DAO-controlled remediation reserve, held in a multi-sig and seeded with assets (including a DAO RDNT allocation). `GuardianLP (gLP)` is a liquid, yield-bearing liquidity token minted by depositing ETH into the Guardian Fund.

**Why:** Traditional safety modules hold capital idle. Guardian converts protection capital into composable yield-bearing capital while creating a direct economic alignment between those who provide protection and those who benefit from it.

**Key rules & properties:**

* **Eligibility:** Users must lock at least **15%** of their lending market deposits as `dLP` to be eligible for automatic remediation (this mirrors the emissions eligibility mechanism but at a higher lock threshold). Lock periods are configurable (e.g., 30/90/180/360 days).
* **Automatic Remediation Engine:** If an eligible user suffers a qualifying exploit, the Guardian Fund distributes funds proportionally (capped at 100% of the net deposit loss for each eligible wallet) according to a transparent formula.
* **GuardianLP (gLP) economics:** gLP holders receive real yield from a mix of protocol revenue allocation, staking/native yield on reserve assets (e.g., wstETH), RDNT incentive streams, and DAO-managed gLP burns. gLP may be partially slashed if a remediation payout is necessary, this creates a risk/return market for protection providers.
* **Initial funding & transitions:** The DAO seeded the fund per the ratified RFPs; future growth is expected to come from user ETH deposits to mint gLP and from revenue flows.

**Composability:** gLP is designed to be usable across DeFi: as collateral in select RIZ markets (later), for yield strategies, and for liquidity provision in partner protocols.

### Competitive Dynamic Reserve Factors

**What:** Reserve factors are no longer static protocol settings. v3 introduces *competitive dynamic reserve factors* which adapt per market and can be tuned by governance to balance competitiveness, liquidity depth, and safety.

**Why:** Static reserve factors create inefficient markets. Dynamic factors allow Radiant to optimize for market conditions and cross-protocol competition.

**Mechanics (high level):**

* Each Radiant market has a `reserveFactor`. The DAO (governance-specified) can adjust the active `reserveFactor` to utilization, volatility, and an objective function that considers `borrowUtilization`, `spread`, and `liquidityDepth`.

### Weighted Emissions Allocation Model

**What:** RDNT emissions are allocated according to a weight-driven model that places more supply-side incentives where they produce long-term value (e.g., strategic partners, RIZ Markets, and markets with higher utility).

**Why:** Uniform, time-based emissions encourage mercenary farming. A weighted approach aligns incentives to durable liquidity and responsible market behavior.

**Mechanics (example):**

* Each market receives a score derived from a configurable formula (factors include: `avg_health_factor`, `usage_score`, and `riz_market`).
* RDNT per-epoch emissions are distributed proportionally to market scores subject to global caps and a DAO floor.
* A portion of RDNT emissions may be directed to `gLP` or to burn mechanisms depending on DAO policy.

**Notes:** The exact weighting function and epoch cadence are governance parameters and were ratified as part of the economic paradigm RFPs.

### Reduced RDNT Inflation

**What:** v3 reduces baseline RDNT inflation compared to previous emission schedules. Combined with the weighted emission model, this reduces token supply pressure while targeting incentives where they produce sustainable growth.

**Why:** Excessive emissions dilute token value and create contradictory incentives. Lower baseline inflation, plus targeted, weight-driven incentives, allow Radiant to reward users without undermining tokenomics.

### Dynamic Revenue Distribution

**What:** Protocol revenue (fees, flash loan fees, liquidation premiums) is dynamically allocated across several buckets: DAO treasury, Guardian Fund (security), incentives (dLP rewards and RDNT allocation), and ecosystem growth.

**Why:** Dynamic distribution ensures the protocol can divert more revenue toward security or incentives when needed (for example, funding the Guardian Fund during high-risk periods).

**Mechanics (example split):**

* Default: `60%` dLP Lockers, `15%` Emissions/Remediation, `15%` DAO OpEx, `10%` Guardian Fund. (Exact percentages are DAO-configurable.)
* Revenue routing is on-chain and auditable; the Guardian Fund receives a non-dilutive portion so that protection is maintained without requiring recurring token minting.

## 3. Governance & community controls

Radiant v3 formalizes community control while keeping operational agility for urgent actions. Governance operates across three coordinated layers:

### Governance layers

* **Discussion Layer**: Open forums (Discourse) for specification, debate, and early-stage design. All new proposals must have a Discussion thread before moving on-chain. Off-chain votes for signaling, community sentiment, and fast-turnaround, low-risk decisions.
* **Snapshot Voting**: On-chain Snapshot votes for a transparent, low-cost mechanism for tokenholders to signal community consensus and guide protocol decisions. Snapshot results inform on-chain proposals.
* **Community Council**: An annually elected body that holds delegated, narrowly-scoped authorities (e.g., parameterization within pre-approved bands, emergency coordination) and is accountable to the DAO.

### Roles & responsibilities

* **Tokenholders**: Ratify major economic changes, approve large treasury movements, and elect the Community Council.
* **Stakeholders/Partners**: Stakeholders and partners play the role of aligning capital, expertise, and ecosystem integrations with the protocol’s growth, ensuring Radiant remains secure, liquid, and broadly adopted.
* **Community Council**: Execute parameter updates inside pre-authorized bounds, manage listing cadence for routine assets, and coordinate emergency response when needed.

### Emergency powers & checks

* Emergency actions (pause markets, quarantine RIZ) require council approval and are time-delayed for larger actions. Any emergency measure is auditable and must be reported to the DAO within a defined window.
* All discretionary multisig operations must publish a rationale and will be subject to retrospective DAO review.

## 4. Smart contract & security notes

This section is a high-level summary. For code-level details, consult the repository and audits.

### Audits & reviews

* v3 contracts receive formal independent audits (list and links maintained in the docs hub). Any critical severity findings must be fixed before deployment.

### Multisig & timelocks

* Multisig operations are protected by timelocks. Governance may configure emergency exception paths but those are logged and contestable.

### Best-of-breed hardening

* v3 contracts underwent independent audits and are bound by multisig timelocks and emergency safeguards.  Together with more stringent SECOPS, Radiant now sets a new security baseline for lending protocols, turning setbacks into resilience.

### On-chain automation & constraints

* Critical actions (minting/burning gLP, reserve factor adjustments beyond small deltas, RIZ quarantines) have on-chain timelock and require either DAO votes or Council approvals depending on the parameter.

### Remediation formulas & transparency

* Remediation payouts follow deterministic formulas based on locked dLP share, net depositor loss, and fund coverage ratio. All calculations are off-chain components that are reproducible by the community.

## 5. Parameter table (v3 defaults & meanings)

| Parameter                     | Default (example)                | Purpose                                                                        |
| ----------------------------- | -------------------------------- | ------------------------------------------------------------------------------ |
| Guardian protection threshold | 15%                              | Minimum dLP locked relative to deposits to qualify for Guardian protection     |
| Community Council elections   | Annual                           | Elections for governance representatives occur once per year.                  |
| Initial Guardian seed         | 50M RDNT DAO-approved allocation | Initial funding of Guardian Fund per governance ratification                   |
| Multisig timelocks            | 3 days                           | Admin multisig transactionsare subject to time delays.                         |
| gLP slashing policy           | Pro-rata based on payout         | gLP backing may be reduced if the Guardian Fund is below the exploited amount. |

***

## 6. References & further reading

* [Radiant Guardian — DeFi Security Reimagined (Medium)](https://medium.com/@RadiantCapital/radiant-guardian-defi-security-reimagined-6fd5c4d96da7)
* [Snapshot Proposal: RFP-28](https://snapshot.box/#/s:radiantcapital.eth/proposal/0x349c3a829823d5fb22a2e1a8e3a48c2a844b90a96680d9b262b932c0ee447088)
* [Snapshot Proposal: RFP-48](https://snapshot.box/#/s:radiantcapital.eth/proposal/0xd2159dc33d032b03345ac15b6fa13d95103657e053bd7abf5f994b858a0328ec)
* [Snapshot Proposal: RFP-51](https://snapshot.box/#/s:radiantcapital.eth/proposal/0xfeb2cc5bc3e1e00ec6cbe9a49b46081c37df5928172c2b0da8a7f48194b59924)
* [Snapshot Proposal: RFP-52](https://snapshot.box/#/s:radiantcapital.eth/proposal/0x8b69c2535698b6a93b383dcba4c84e4174e65a7b1535c6b66ccf2ae481d88b86)
* [Radiant Governance Forum](https://community.radiant.capital/)
* [Radiant Analytics Dashboard](https://dune.com/radiant/analytics)
* [Audits & Security Disclosures](https://docs.radiant.capital/radiant/contracts-and-security/audits)