How a $50M hack sent Radiant Capital from $350M TVL to near zero

Radiant Capital [RDNT], a cross-chain lending protocol, officially began a phased and orderly wind-down of operations. This comes after 18 months of recovery efforts since its exploit in October 2024, which resulted in a loss value of $50 million.

By early 2024, its TVL had climbed above $350 million. During that period, the protocol activity remained strong, with daily fees and revenue frequently exceeding $100,000. However, momentum weakened through mid-2024 as TVL fell below $200 million, signaling sustained capital outflows.

As liquidity declined, fee generation also contracted sharply, reflecting lower user participation and reduced borrowing demand. This stagnation pushed its TVL toward near-zero levels within months.

What comes next for Radiant Capital?

Radiant Capital’s wind-down increasingly resembles a managed transition rather than a disorderly collapse. As the protocol enters its final phase, it still holds $1.17 million in TVL across Arbitrum [ARB], Ethereum [ETH], Base, and BSC.

Furthermore, active loans hover around $866,000, indicating that users continue managing positions despite the shutdown.

Radiant Capital reduced borrow caps to one and halted incentives to preserve remaining liquidity for withdrawals, repayments, and collateral management.

Meanwhile, other operations were halted, where the protocol noted in a statement,

With reduced operational support and no ongoing development, there is no assurance that all functionality will behave exactly as originally intended under all conditions. No further upgrades, patches, or interventions should be assumed. Users should act conservatively and prioritize capital withdrawal.

Compensation is also active through on-chain claim contracts, ensuring that recovery paths remain available even as Radiant gradually transitions into maintenance mode.

Why recovery remains a key challenge

Radiant Capital’s downfall highlights a recurring challenge across DeFi: while security flaws can often be patched within weeks, economic recovery typically unfolds far more slowly.

Although the protocol addressed the October 2024 exploit, user confidence never fully recovered. TVL remained below $1.2 million in June 2026, far from the $300–400 million levels seen before the incident.

Similar patterns have emerged elsewhere. Uranium Finance never regained liquidity after losing $57 million in a 2021 flash loan attack, eventually fading into inactivity. Likewise, Step Finance shut down in 2026 after a $27–40 million treasury drain left rescue efforts unsuccessful.

Together, these cases suggest treasury strength, community retention, and liquidity recovery increasingly determine survival long after exploits are contained.

Final Summary

• Radiant Capital’s decline shows that restoring code is often easier than restoring user confidence and liquidity.
• The protocol’s orderly shutdown highlights how treasury strength and community support shape long-term DeFi survival.