Part 1. Radar Ecosystem — the DAO that is revamping DeFi

5 min readDec 6, 2021

Upcoming:

RADAR DAO
CONTRACTS Program
BSC Staking

After a long waiting period, we are proud to announce our plans for the future of Radar and how they will come to fruition through RADAR DAO. A big thank you to all our devoted holders, avid users and members of the community!

Today we define the base of our entire ecosystem for you and present the upcoming products & utilities of Radar. Moving closer to the festive period of the year, RADAR DAO will be launched before the Christmas Day, 25th of December. This moment will represent the first celebration of the hard work behind Radar and that of our devoted supporters.

To kick things off we wanted to provide everyone with a better understanding of what RADAR DAO will entail. Hence, we have created a short introduction to relevant information about the functionality of a DAO. You can use it to familiarise yourself with terms such as: DAO, Governance, Liquidity mining, Rewards and more.

Part of our aim is to achieve full decentralisation, therefore it is important to us that you are aware of how DeFi works so that you can fully understand long term impact of RADAR and the methods that will be used to revolutionise the crypto space.

Governance

To ensure full decentralisation, the team must turn the platform into a community-owned project. Decentralised Autonomous Organisations (DAOs) allow users to participate in voting on protocol changes and future developments through the use of governance tokens.

Holding a specific amount of tokens will reflect in a directly proportional voting power. Thus, holders will have their say and possibility to support the ecosystem with their unique insights and diverse decision-making.

Impermanent loss

This happens when the price of the tokens you’ve contributed to a liquidity pool changes compared to when you first deposited them. In the worst possible outcome, this leads to less value in $USD when you decide to withdraw compared to the value when you provided liquidity. Even so, this risk can usually be offset by the gains made through rewards.

Liquidity mining

Liquidity mining (yield farming), is a network participation strategy that allows you to provide liquidity to a liquidity pool on a DEX and receive rewards.

Rewards

Providers can be rewarded in the native or governance token of the protocol, which allows you to vote and contribute to the protocol’s future.

What is an AMM?

DEXs are replacing order books with the help of Automatic Market Makers. These are smart contracts that use a set of defined and fixed rules to regulate trading. Since smart contracts are decentralized, users do not have to trade using order book of an exchange. Instead, they effectively trade directly with other users who are interacting with the same tokens, respectively the same liquidity pools.

How does AMM work?

The AMM collects the fees from token swaps and grants them to each liquidity provider (LP) as a reward. While the token swapper pays a small fee to trade on a decentralized exchange, the liquidity provider earns money for providing the liquidity that the first user will need. It calculates the prices of the tokens in regards to the recurring ‘buys’ and ‘sells’, the amount of liquidity in the respective pools and the initial price of the token when it was first listed.

Low/High Liquidity and the token utility outlook

Now that you know more about the main features of Radar DAO and the importance of liquidity, you will easily understand that by developing LP and Bonds programs, the utility of the native token will continue to develop. An additional outcome of this will be the stabilisation of volatility and it can go as far as the emergence of a stable price floor.

A high liquidity allows more people to trade greater amounts of tokens, without having a weighty impact on the price. The higher the liquidity, the lower the depth.

By constantly adding use cases for the native token (governance rights, fee reimbursement, lower fees, more features, a.o.) users are incentivised to buy and hold a specific amount of $RADAR tokens, based on their needs and preferences. They are doing this for the advantages they obtain, not necessarily for trading. This results in a heathy strong selling resistance that grows organically, while more and more people discover the benefits of the ecosystem.

Despite any market condition, the Radar Ecosystem will be able to self-sustain itself, providing value and stability for everyone involved.

Bonds program — Radar Contracts

As many of you know, Liquidity providing on its own, has become one of the norm activities in the DeFi space, which led to a certain monotony on the investors’ part. Therefore, Radar is introducing its own twist:

The Radar Contract.

Radar Contracts are Bonds that can be bought after a user provided liquidity to the WBNB/RADAR pair and received the corresponding LP tokens. They will have the option to exchange their LP tokens for $RADAR. The benefit is that for each such transaction, for your LP tokens you will receive $RADAR of the same value (RADAR+WBNB added to the pool) plus a 5% premium.

An example would be:

Depositing $RADAR and $WBNB worth 1000 USD each in the liquidity pool (total investment $2000)
Effectively, swapping your LP tokens for $RADAR will be like buying our tokens with a 5% bonus.
After a vesting period of 5 days, you will receive $RADAR worth $2100 USD

The Bonds Program will take place during multiple occasions and while we cannot yet disclose the exact amount of tokens that will be dedicated to it, the amount will be in the X millions of $RADAR. The opportunities that arise will potentially benefit any participant of the RADAR DAO and our ecosystem as a whole.

BSC Staking

Strengthening our impact on the BSC network, means that BSC staking will be available for our holders through Radar DAO. This is an essential step towards the evolution of our Ecosystem and implementation of the staking rewards. Not only will you receive APY on your idle tokens and finally grow your weight in Radar, but we are going to expand our Staking Rewards system to a whole new dimension.

In “Part 2. Radar Ecosystem — DAO” we are going to provide an exact overview upon all the different rewards that stakers are going to have across our Ecosystem. So stay tuned for more exciting news and let us know what you think about the latest developments by sharing your thoughts on our Telegram Group.