The emergence of the decentralized financial system, anchored on the backbone of cryptocurrency, has drafted a transformative dimension to human investment options. In order to tap maximum benefits from asset resources, investors often tend to adopt the concept of diversification rather than holding on to a single asset.
Different cryptos register varying performance circles and a sound investment that involves sound portfolio choices can help to create the diversification needed to spread returns for profit maximization. However, diversification and facilitation of mainstream adoption is often hindered by lack of truly interoperable system, volatility risks within the crypto space and workability around proper asset management.
To do proper asset management as an individual or asset management institution, there is always a challenge of digging up the unique attributes of assets, weighing up their beneficial returns at a particular time (as well as projecting the possible future changes) and deciding on a profitable capital allocation model. This requires vast experience or knowledge. Even experienced asset managers often find the task of understanding AMMs, monitoring synthetic assets, futures, lending protocols and NFTs daunting. Hence, it is a usual practice for newbies or even experienced investors to delegate the task management of assets to experienced, verifiable and knowledgeable asset managers. This is another challenge on its own as the question has always been; how do you go about identifying them? What is the best way to prove experience and knowledge in asset management? Well, the simplest answer as always is to look at The Returns. This is where Radar Protocol comes in. With a proven proof of return mechanism, Radar protocol offers an effective model to identify knowledgeable portfolio managers, thereby drawing up investors to the right asset managers and deflecting the wrong ones. Similar to how a radar detects, locates, tracks and recognizes objects at a considerable distance, radar protocol offer itself as an ecosystem that is capable of identifying opportunities and facilitating access to them in a simple and easy-to-use manner.
1. One App. All Chains. Every transactions
I will like to describe Radar protocol as an all-in-one app that was created to tackle and repair the fragmentation in DeFi using innovative smart contract technologies. It is a blockchain protocol that is designed to assist individuals to find the best opportunity and breakthrough at any point using the power of technology without the need for neckbreaking personal analysis.
As a complete ecosystem, Radar protocol uses cross-chain financial tools to innovate the ways investors and depositors interact with vaults in a non-custodial manner. Capital allocators and managers can relate trustlessly without an additional need for extra verification or unclear terms.
As an all in one platform, Radar protocol offers users the capability to choose between several proven vaults which include trading vaults, lending vaults as well as NFT vaults. Apart from this, users are able to generate yield on idle RADAR tokens by staking them for attracting returns. In addition, individuals can create vaults as well as become an index of other vaults.
Radar grants users access to DeFi economy through integration with several protocols. With Radar, you can invest and start earning automated returns by providing liquidity, lending, insurance and trading. These ensure that users are provided with arrays of wide options to customize their way as they engage with the platform for significant benefits. In the next sections, I will expand further on how asset allocators can utilize this for maximum returns, but first, let’s dive into the Proof of Return system that Radar will use to ensure knowledgeable and effective management of depositors investment.
2. You need a Proof? Here comes the “Proof of Return”.
As mentioned in the preceding sections, users are opened to delegate their assets to knowledgeable asset managers, since everyone’s intention is to continually explore methods that can ultimately improve their financial gains. However, it can be herculean for fund owners to identify proven mangers that they can confidently delegate their assets to. Radar protocol perfectly understood the challenges faced by asset allocators and this was what let to the development of an effective asset manager system that is based on Proof of Return (PoR). The PoR will create a successful template that will be used to evaluate proficiency in asset management and return generation.
The Proof of Return is a proprietary model of Radar Protocol that can helps investors to validate asset managers and access their past performances. PoR incentivize positive performances and ensures that asset managers’ actions, reward and records are publicly accessible to asset depositors.
As successful managers strive to build upon a winning record in order to earn more reward based on the PoR system, healthy competition are ensued between strategic and successful managers. This will create a healthy avenue for investors to witness a promising performance of their capitals. Now that we have examined the Proof of Return system that is native to Radar, let’s explore Radar deeper by looking at how the entire ecosystem is designed to create a first-class asset management and DeFi experience.
3. The Radar ecosystem
The Radar ecosystem is built on a cross-chain fundamentals that combines asset management business with complete decentralization using the power of DeFi and cross-chain interoperability. The entire Radar Protocol ecosystem is built around 3 essential parts which are Autonomous Asset Mangement, Autonomous Liquidity Aggregator and Radar Mobile Wallet
a. The Protocol: Autonomous Asset Management (AMM)
Radar has developed a versatile Autonomous Asset management app which is a cross-chain decentralized infrastructure that users can use to build and monetize their investment strategies through the use of smart vaults. It is the layer within Radar protocol that allows investors and vault managers to create or join multiple vaults ranging from yield and trading to NFTs. To guarantee absolute decentralization and secure transaction execution, exchange between parties in any of Radar’s AMM vault is done publicly on-chain in a non-custodial fashion , thereby eliminating the need for initial trust.
Creating an AMM Valut in Radar protocol is an easy pie. Firstly, asset manger needs to initialize a smart contract, deposit an initial amount and set up his parameters. These parameters may include variables such name, accepted assets, preferred chains, rules etc. After creation, asset allocators who fulfill the vault requirement can use the vault by agreeing with the parameters and overall vault vision. AMM vaults that can be created include Yield Vault, Spot Vault, Future Vault, NFT Vault, Landing and Borrowing vault, and Vault dFun LP Tokens.
- The yield vault enables asset managers to allocate capital on multiple functions such lending, staking or any form of yield generating activity as defined by the vault attributes.
- The spot vault offers an avenue for asset managers to trade spot cryptocurrencies within the bound of his attributes.
- In the future vaults, managers can run decentralized trading strategies that are executed upon some set of rules as defined by vault managers
- Within the NFT vaults, Radar has created an opportunity for capital allocators who may not be fully used to the NFT system to delegate their asset to vault managers. Interestingly, RADAR has designed this in a way that vaults can be customized or targeted based on sub-categories of preferences such as metaverse NFTs, chain specific NFTs etc.
- The staking vault provides an opportunity to allocate and reallocate assets on pools of any asset that has incorporated a native staking feature.
- The lending and borrowing function performs a dual role of providing users with extra investment options as well as enabling asset allocators and mangers to use their locked up capital for collateral approval on borrowing.
Also, Radar protocol Autonomous Asset Management system employ the use of Auto-Allocated Capital . With this, users can configure a general list of settings and permissions while the protocol will automatically decide effective weighted averages and allocate users deposits profitably into respective viable vault.
The Autonomous Asset Management system of RADAR protocol is equipped with some preset permission and the management of this permission will be governance-Based. In addition, Radar protocol has taken additional steps to ensure fund security in its vault by partnering with related insurance services. This is done in addition to the adoption of industry-proven security standards to ensure the guarantee of investors’ funds.
b. The Terminal: Autonomous liquidity Aggregator (ALA)
Generally, each DEX has its own repository of liquidity pools (LP) that results in different trading term for each coin. A DEX may offer the best trade for a particular coin based on its own liquidity; however, another DEX may offer users with a superior trade option for a different coin, resulting in a loss of opportunity for the traders who use the first DEX. Since DEXs are constantly striving to provide users with the quickest, most cost-efficient, and secured trades, it is necessary to be able to identify the best DEX to be and coin to trade at a particular time. Rader’s terminal powered by ALA will use most DEXs available in DeFi Space for every transaction. This implies that traders will be able to harmonize profit availability and get best offer traders with be best slippage as possible.
ALA component of the Radar ecosystem was built to assist allocators and managers to achieve capital efficiency in all regards. It simplifies large orders placing and efficientizes average price through the use of multiple decentralized AMMs on different chains while at the same time reducing gas costs.
With the inbuilt Optimized DEX Order feature, transactions can be split onto different blockchain and pools, thereby resulting in a better overall rate. This function can be very handy for vault mangers that may need to deploy larger sum of capital rapidly.
Another useful feature of Radar’s ALA is BOT-PROTECTED TRANSACTIONS. With this, Radar offers an opportunity for transactions to be executed directly through miners. Since transactions are only broadcasted after their execution, this will protect users from the ability for their transactions to be frontrun by bots or individuals.
c. The Wallet: Radar Wallet
In addition to the two exceptional protocols, Radar is planning to unveil its own Mobile App. This mobile wallet is designed to offer complete suite of options that users can use to store, receive, send or swap assets from multiple EVM supported chains. The application will be globally accessible from day one of its release and it is designed to be compatible with both iOS and Andriod.
I have examined the essential qualities of this wallet and I have drawn up the following peculiar highlights:
- Direct integration with Radar ALM thereby enabling users access to functions such gas reimbursement, transaction optimization and security.
- Dapp browser that grant users direct access to web3 applications using the balances from the app
- Ability to process private transactions, avoid frontrunning and handling multiple wallet on different chains with utmost simplicity
- Enhanced access to fund management and portfolio status
4. Radar Beneficial Revenue Model
Radar protocol does not only offer superior return for asset allocators that are making use of its automated investment strategies to manage and boost the profitability of their assets; it also offers an attractive platform for fund managers to generate revenue.
Asset managers may decide to request subscription fee from asset allocators. Out of fees generated, they are only required to pay 5% of subscription charge as commission to Radar protocol. Also, fund managers may pay a 5% fees from the performance fees they gain from asset allocators.
For asset allocators, Radar has designed its platform in such a way that no entrance fees are paid on any of its vault. Radar only takes an exit fee of 1% anytime an allocator redeems his investment. For me this is a kind gesture and the fees demand by this protocol is highly considerable when put at par with similar protocols. The interesting part of this is that Radar has structured the platform in such a way that the fees generated from the different streams of activities are designed to flow back and add continuous value either directly or indirectly into the entire ecosystem.
25% of fund generated by the platform has been allocated to irreversible burn. This will ensure a deflationary system is created for RADAR. Radar also capture the interest of passionate liquidity providers. For any individual that provide liquidity on any of the Automated Marker Makers where RADAR is listed, they are destined to earn extra Radar token as reward in addition to the pre-existing LP rewards that comes directly from AMM. This will be made possible by using 25% of platform revenue for this purpose. Similarly, 25% of platform generated fund is meant to offer reward to users who stake their Radar token, thereby giving users more reason to stake their token and earn passively while holding them. Lastly, the remaining 25% of fund will go to the treasury which is controlled by the community through a thoroughly decentralized and participatory governance model.
5. Conclusion
The current rate of development and need for financial diversification requires dynamic sets of approaches that asset owners should employ in order to be financially relevant and profitable. Due to the growing and evolving nature of most financial assets, there is need for asset managers and owners to be innovative in order to be able to create a sustainable framework to tackle the complexities surrounding profitable fund management. With its unique proprietary and tested model, Radar protocol is well positioned to fill the gap that other similarly ambitious projects left opened. With a thorough mix of smart innovations and improvement of existing financial template, Radar protocol is destined to be the number one destination of choice for cryptocurrency beginners and aficionados that are seeking a truly trustless, reliable, professional and cost effective increase of their total wealth with time.
6. Social Channels
Radar’s Website
Radar’s Telegram
Vodka Token’s Twitter
https://twitter.com/radarprotocol
Radar’s Medium