Overview

The collector is the core component of the Radian Protocol, and acts as a treasury, yield generation system, an oracle, and a burning mechanism all at the same time.

Fee-generating modules of the Radian Protocl such as the Radian Exchange, the Radian Paymaster, Radian Lending, the USDX Stablecoin, and Radian Staking all send a portion of the fees generated to the collector.

Holders of RAD can, at any time, burn RAD in exchange for the underlying assets in the collector, relative to the total supply. This means that at any time, if the per-RAD value of the underlying assets in the collector is greater than price of RAD, there is an arbitrage opportunity to burn RAD and sell the underlying assets for a profit. This is a win-win for other holders as it decreases the total supply of RAD, and increases the value of the remaining RAD.

Transfers and RADX

Unlike your typical ERC20 token, the RAD token is not transferrable outside of the Radian Protocol. This is due to the fact that RAD is a rebasing token similar to stETH, and also due to the fact that RAD has a pricing function that is proportional to the value of the underlying assets within the Radian Exchange.

For these reasons, RAD can be converted to RADX, which is a transferrable ERC20 token. The RADX token is a 1:1 representation of the RAD token, and can be converted back to RAD at any time.

To give a more technical description, RAD token transfers require either the "from" or "to" address to be some contract of the protocol itself. This means it can be transferred from the protocol to your wallet, but not from your wallet to another wallet (however you will still be able to transfer it back to the protocol).

Governance

The RAD token is also the governance token of the Radian Protocol. It is used to vote on proposals, and to stake for the Radian Staking module.