Radiant Capital unveils Guardian Fund to strengthen the security of user deposits in its ecosystem

Radiant Capital has introduced the Guardian Fund, a protocol-native reserve mechanism designed to protect user deposits in the Radiant lending ecosystem from qualifying smart contract exploits and similar adverse events. The fund sits at the core of the new Radiant Guardian framework, which was approved via governance proposal RFP-52 and is being rolled out in phases, with Phase I focused on seeding and activating the fund under DAO control. During this initial phase, the Radiant DAO acts as the exclusive depositor, building the capital base that will later support user-facing protection once the system is fully live. Guardian combines a fund + token mechanism: the Guardian Fund holds reserve assets such as ETH, wstETH, and RDNT, while the associated GuardianLP (gLP) token represents a yield-bearing claim on this pool and functions as the economic backbone of Radiant’s security model. Rather than leaving reserves idle, Guardian deploys them into low-risk strategies so capital earns yield while remaining available for rapid remediation of covered exploits, with parameters such as risk scope, capital deployment, and remediation rules governed on-chain by the DAO. Over time, eligible users who lock sufficient DynamicLP (dLP) against their deposits will be able to receive automatic, rules-based compensation from the Guardian Fund in the event of a covered incident, effectively creating a decentralized risk marketplace where gLP holders underwrite protection and share in both yield and potential slashing if remediation is triggered. This initiative matters because it aims to provide user-level deposit protection directly at the protocol layer, addressing one of DeFi’s persistent weaknesses: the lack of systematic, transparent, and non-custodial exploit coverage. By tying real yield, automatic remediation, and DAO governance into a composable ERC-20 token (gLP), Radiant is positioning Guardian as an institutional-grade security primitive that can support both retail users and larger capital allocators seeking clearer risk management, potentially influencing how other DeFi protocols design native protection and reserve mechanisms.

✨ AI-generated background, compiled from web sources — not editorial content.

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