Reinventing the DeFi LEGO game: Layer1 protocol Radix builds the world of finance from the ground up

As the large innovation movement sparked by DeFi spread, many found that the underlying point was to create a new financial system to replace the old one.

For a long time, the crypto industry has been searching for and thinking about what the financial world of the future will look like, and as the massive innovation movement sparked by DeFi spread, many realized that the fundamental point was to create a new financial system to replace the old one. At the same time, the market has reached this understanding that the essence of finance is decentralization.

The most pressing need for crypto finance is to address the cost of transactions, enabling lower cost DeFi transactions. The market with strong demand for DeFi is now turning to PoS, sharding, Layer2 and other scaling ideas, but there seems to be a “fundamental conflict” between the high gas problem brought by the Ethernet PoW chain and keeping DeFi composability.

Radix, a Layer 1 protocol focused on building decentralized finance, is trying to pioneer a different style, and will start with components such as the underlying consensus layer, the upper application layer, and the ecosystem layer to completely revamp each key layer of DeFi, providing users with a new tool with scalability, ease of use, and liquidity potential. From the very first algorithms to building the upper financial Lego layer that will support the massive financial system of the new era ahead.

Radix – The Layer1 protocol specifically for DeFi
Radix is focused on building Layer 1 protocols for decentralized finance, and investors from Skype, Uniswap and Aave are backing Radix, the future-proof DeFi platform. Radix is the only decentralized network where developers can build fast without the threat of intruders and hackers, where every improvement pays off, and where scalability is never a bottleneck.

Radix is a new protocol dedicated to solving major problems in the market through Layer 1 (e.g. Ether, Polka, Avalanche, etc.) Radix wants to make DeFi compete with traditional finance and fundamentally revolutionize the way people interact with money.

Radix is on a mission to create a new decentralized global financial system. Radix believes that the only way to finally get some freedom and change the world is to create a system that can transcend the control of a single entity, the control of a single organization, the control of a single government, while providing “frictionless access, liquidity and programmability for any asset in the world”.

Solving the three thorny problems of DeFi development – Radix envisions DeFi from the ground up
In the short term, the Layer2-related scaling solution that continues to be hotly debated in the market may be effective, but in the long term, if we can fundamentally solve the Layer1 scaling problem, then all kinds of DeFi-like applications can gain more development possibilities.

From a systemic point of view, Layer2 is built on top of Layer1, with separate systems for validators, liquidity providers, and token economies.

Layer2 uses Layer1 to provide security and consensus for the start and end of the various operations above, while attempting to host a certain level of computation or transaction processing on Layer1, etc. So, to some extent, Layer2 is more of a patch on a “flawed” system than a solution.

For example, the development and use of smart contracts will become more complex as developers will need to identify the specific Layer2 solution to be used among the myriad of solutions available in the market. In addition, because the individual Layer2s are independent of each other, new computer networks and cryptographic economic incentives will be needed to run and protect Layer2 networks.

In this context, Radix will build Layer1’s distributed ledger from scratch, removing the dependency on Layer2. This reduces complexity for developers and users, and improves the overall user experience and adoption rate.

Radix achieves linear scaling without sacrificing Layer2 overlay layers by achieving atomic composability without breaking it.

Reinventing the DeFi LEGO game: Layer1 protocol Radix builds the world of finance from the ground up

Source: Radix White Paper

  1. Specially Built DeFi Programming Environment

Today, there are three thorny issues with the DeFi state system that are keeping the entire space from moving to the next phase of truly explosive growth.

First, it is very difficult for developers to build bug-free code, as the number of hacks and exploits facing individual applications is increasing and has cost billions of dollars in lost money. On average, Solidity developers currently spend about 90% of their time protecting their code and only about 10% of their time writing features.

Radix’s ending solution to these problems is to use a purpose-built DeFi programming environment. Radix enables rapid, secure development by allowing everyone to build quickly without breaking the deal, and to accelerate production time and enhance Radix’s innovative scope by starting with security and speed and the most important features.

Reinventing the DeFi LEGO game: Layer1 protocol Radix builds the world of finance from the ground up

Source: Radix White Paper

  1. Developer Eco-Incentives

The second issue facing the DeFi ecosystem is developer eco-incentives. Typically, building a billion-dollar application often requires the support of the developer community, but only a few developers are rewarded from the DApp, and incremental improvements don’t help.

For example, an individual ETH developer who creates a groundbreaking technology innovation for Ether will struggle to be highly rewarded unless the developer stays committed to building the app.

Radix solves this problem by rewarding everyone who contributes to the platform by creating a decentralized, self-motivating system that rewards those who contribute code to the ecosystem.

For example, if a developer builds a useful new component for the Radix ecosystem, and a DApp uses that component to create a new, easy-to-use application, the component developer receives a usage fee each time the DApp is used. This ensures that code contributors and DApp builders are actively building and contributing to the Radix ecosystem.

Reinventing the DeFi LEGO game: Layer1 protocol Radix builds the world of finance from the ground up

Source: Medium

  1. Preserve composability

DeFi is currently very expensive to use due to its lack of scalability. Ether 2.0, Avalanche, Polkadot and all other Layers1 have not solved the scalability problem of DeFi because its sharding approach destroys the liquidity of the ecosystem.

To address this problem, Radix has built a unique consensus algorithm, Cerberus, that scales linearly without destroying atomic composability, allowing all DeFi applications to scale proportionally without Layer2-like scaling solutions, reducing friction between liquidities.

Radix’s Unique New Consensus Algorithm: Cerberus

Radix uses a unique consensus mechanism called Cerberus, which is based on a “unique pre-fragmented ledger and a new consensus process called braiding”, with a reward program called Developer Royalties that provides protocol-level rewards.

Cerberus is a cross-fragment consensus algorithm that works across multiple shards, not just within a single shard. The traditional notion of consensus is that nodes confirm and then package transactions and broadcast them, which is a non-cross consensus, and working across shards is a cross-shard consensus. radix proposes Core-Cerberus, which uses strict environmental requirements to achieve simple but powerful multi-shard transaction processing.

First, Cerberus uses different types of slices. Instead of splitting DApps or assets between a static set of slices, Cerberus actually uses an infinite set of slices in which assets and DApps are presented in a dynamic state, and the result can run in infinite parallel.

This means that no matter how much demand there is on the Radix network, the natural economic incentive to add more nodes to share the load and increase throughput to match network demand will raise the scalability ceiling without limit.

Second, Cerberus removes barriers between its slices with a new consensus design. While each slice is capable of fast, secure consensus independently, Cerberus can “weave” these consensus processes directly into an “atomic ground” and instantly for each individual transaction. Weaving cross-fragment consensus is as atomic and secure as simple single-fragment consensus, which means that composability can be enjoyed with the same freedom and frictionlessness as on a single blockchain, but without the scalability limitations.

This is how Cerberus ensures atomicity between shards for complex transactions such as fast debits and credits or other DeFi operations. In addition, there are no other transactions involving these validation nodes and no need to wait for consensus operations to complete. The verification process can process hundreds or thousands of consensus transactions in parallel, which means that these cross-sharding operations inherently do not slow down the entire network.

Reinventing the DeFi LEGO game: Layer1 protocol Radix builds the world of finance from the ground up

Source: Medium

Funding Background

In July 2020, UK startup Radix DLT closed a new $4.1 million round of funding from seed-focused venture capital firm LocalGlobe and TransferWise co-founder Taavet Hinrikus, according to TechCrunch.

Olympia Mainline Coming Soon

After years of development, Olympia, the first version of the Radix public network (i.e., the main network), will go live on June 30, 2021.

The first epoch after the creation of Radix is called the “bootstrapping epoch,” which runs for about two weeks according to different rules to ensure a smooth start-up of the network. The two-week bootstrapping period will provide enough time for everyone to be fairly prepared to participate in the Radix network starting with epoch 2.

During this two-week period, holders of eXRD tokens on the ethereum network can exchange eXRD for XRD on the Radix network and pledge that XRD to participate in incentive rewards, with the token holder choosing the verified node they want to pledge to and locking in the first pledge.

Radix released eXRD prior to the mainnet launch to help improve ownership and pledge decentralization, and to increase its security once the mainnet is online.

At the start of Epoch 2, the Radix network transitions to normal epoch operations and the protocol will combine only the first 100 nodes commissioned during Epoch 1 for a decentralized verification node for Epoch 2.

Reinventing the DeFi LEGO game: Layer1 protocol Radix builds the world of finance from the ground up

Source: Medium

Token Economic Model

Radix plans to open a public offering of eXRD tokens on October 8. 642 million eXRDs will be sold at a token price of $0.039, and the unlocking period for different tokens will be determined by the market price, with the unlocking program starting on November 17, with a maximum circulation of 4.41 billion and an initial circulation of The unlocking program will be launched on November 17 with a maximum circulation of 4.41 billion and an initial circulation of 0.42 billion.

l Total Issuance: 24,000,000,000 eXRD

Initial Circulation: 4,410,000,000 eXRD

l Issue Price: $0.039

l Token Distribution

l Pledge Bonus: 50%

l Stable Coin Bonus: 10%

l Team: 10%

Radix Community: 12.5%

Radix Foundation: 9.8%

l Development Incentive: 2.5%

l Network Subsidy: 2.5%

l Token Offering: 2.7%

Reinventing the DeFi LEGO game: Layer1 protocol Radix builds the world of finance from the ground up

Source: Radix

l Token Unlocking

Token unlocking depends on the change of coin price. The issuance tokens will be unlocked from November 2020 after the public offering, and the team tokens will be locked until the main online, after which they will be unlocked depending on the coin price.

l Token Application Scenarios

Radix’s token is a utility token with different application scenarios within the ecosystem.

For many Layer1 protocols, tokens are typically a means of paying for platform usage, where a fee must be submitted each time an application is deployed or a transaction is sent, whereas on Radix, the full fee is destroyed each time a transaction or anything is completed.

Second, for the Layer1 protocol, tokens are implemented through pledges to provide security to the network, and in order to secure the network XRD must be locked to the node, and in return the node runner will receive a portion of the pledge reward as long as they participate in consensus.

Third, XRD is the platform’s base token and can be used by any application on top of the Radix DeFi ecosystem as basic collateral or as one of the exchange token types.

The eXRD (ERC20) token, currently released before the network goes live at the end of the second quarter of this year, will be exchanged 1:1 with XRD.

According to the top AscendEX (BitMax) exchange announcement, AscendEX will open EXRD/USDT trading at 21:00 BST on June 29 and start charging and withdrawing operations at 9:00 a.m. on June 29, which will further enhance the liquidity of XRD when it goes live on the AscendEX exchange. Also for the ecological benefit.


Overall, Radix aims to build a protocol tailored to DeFi, with sharding at the Layer1 layer, improved performance through parallel processing and cross-sharding consensus, and composability through components. Fundamentally, the financial system is effectively enabling capital allocation, which is achieved through a wide range of financial products, meaning that the variety and number of DeFi is far from adequate, and Radix will complement the rapid growth of DeFi from the ground up.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-29 01:20
Next 2021-06-29 01:49

Related articles