New Year, New Challenges!

Coverage funds have a hard cap tied to their size. When claims exceed available funds, users receive proportional distributions rather than full coverage. **Key mechanics:** - Fund size is visible on-chain as an auditable parameter - No promises—just verifiable constraints - Proportional distribution when capacity is exceeded This approach provides bounded downside risk, which remains preferable to undefined exposure. All limits are transparent and enforced at the protocol level.

Radiant Capital has launched **gLP**, a yield-bearing token that powers its Guardian Fund protection mechanism. **How it works:** - Depositing into the Guardian Fund mints gLP tokens - gLP earns from protocol revenue and native yield on reserve assets - In normal conditions, gLP holders earn yield - If an exploit triggers remediation, gLP holders absorb losses proportionally to cover eligible users **Eligibility requirements:** - Depositors must lock 15% of their deposit value in dLP to qualify for automatic remediation - If a qualifying exploit occurs, the Guardian Fund distributes proportionally with no manual intervention gLP is now live on Arbitrum. Unlike traditional safety modules, the capital remains productive while providing protection, with transparent risk and measurable rewards. [Start participating](https://app.radiant.capital/#/guardian) | [Documentation](https://docs.radiant.capital/radiant/project-info/radiant-guardian/guardianlp-glp)

**Guardian** introduces a novel approach to DeFi lending protection through an active on-chain risk market with explicit pricing mechanisms. **Key Features:** - Not a passive reserve fund or coverage promise - Functions as an **on-chain risk market** with transparent pricing on both sides - Provides protection when markets move beyond normal parameters This primitive represents a shift toward safer DeFi lending design, emphasizing clear parameters and isolated risk management. [Read full article](https://medium.com/@RadiantCapital/radiant-capitals-role-in-the-next-chapter-of-on-chain-lending-49e6b758a0e2)

**Radiant joins Web3 Global Talks today at 11:30 AM EST** to discuss the key challenges and misconceptions currently shaping Web3's development. The discussion will address common misunderstandings in the Web3 space and explore how these perceptions impact the industry's growth. - Live discussion format on Twitter Spaces - Focus on Web3 development challenges - Industry misconceptions analysis [Join the conversation](https://x.com/i/spaces/1jMJgREOrWAGL?s=20) to hear insights on navigating Web3's evolving landscape.

**Radiant Capital** has launched a new temp-check survey for **Convenience Class remediation** following the October hack. The Community Council is seeking feedback on: - **Revised phased payout schedule** - **Potential dust threshold adjustments** Key details: - Survey runs for **2 weeks** - Official Snapshot vote will follow after survey period - Part of ongoing remediation efforts for hack victims This follows previous community surveys exploring recovery options for affected users, with the assumption that no external bailout will occur. [**Take the survey**](https://community.radiant.capital/t/survey-107-phased-remediation-and-dust-considerations-for-the-convenience-class/2283/1) to help shape the remediation approach.