How to play Eigenpie’s airdrop? An in-depth analysis of its mechanism, prospects and revenue expectations

CapitalismLab

2024-01-29 14:30

Read this article in 7 Minutes

AI summary

View the summary

Original author: CapitalismLab

Editor's note: Yesterday, Magpie and EigenLayer announced the launch of the SubDAO "Eigenpie", which focuses on liquidity re-staking. How to participate in this event, what are the prospects and benefits? Cryptocurrency KOL CapitalismLab has done a detailed analysis on X, and BlockBeats has compiled the full text below:

Magpie has launched a points activity for LRT's subDAO @Eigenpiexyz_io today. This is the biggest cake for TVL providers in the LRT project so far. The project has unique features and Magpie's subDAO has had considerable profits before, with a constant value of configuration.

This thread will analyze the airdrop gameplay, mechanism, prospects, and expected returns of Eigenpie, helping you to achieve maximum returns clearly and easily.

A. Airdrop Gameplay

By depositing LST such as stETH, you can obtain triple rewards:

1. Eigenpie points, corresponding to 10% of the total airdrop.

2. Eigenlayer Integration (after Eigenlayer opens deposits on February 5th)

3. Eigenpie corresponds to 24% of the total IDO share, with a 3M FDV undervaluation.

3. The basic yield of the stored LST (for example, if the mETH APR is 7%, you can continue to enjoy 7%).

The points will be increased based on the total size of the team, and the larger the team, the greater the increase, up to a maximum of two times. Therefore, it is best to stick together for warmth. Welcome to join: https://eigenlayer.magpiexyz.io/?ref=0x307225Bc52ef0fEDAa67b626996c0E74cEA924Ee

After using it, you can continue to invite new people, and they will also join this team.

B. Mechanism

Eigenpie is doing isolate LRT (ILRT), issuing a corresponding Token for each LST to isolate risk. Please refer to the table below.

Currently, with so many LSTs on the Eigenlayer, if a LRT project is accepted in a general way, then the project will bear all the risks of the underlying LSTs. Once a security issue arises with one of the LSTs, it may cause devastating damage to the project.

So there is Eigenpie's ILRT that can isolate risks.

Isolating risks also isolates liquidity. Could this be a problem? Actually, it's not. One advantage of supporting LRT that supports LST is that it can fully utilize the liquidity of the underlying LST. Individual pairs such as mrETH/rETH and mmETH/mETH are actually more conducive to collaborating with LST project parties to incentivize liquidity.

C. Outlook

What are the advantages of this project? Although it was launched relatively late, there is still a demand gap that has not been filled: those who have adopted Eigenlayer in LST are eager to participate in LRT narrative, and Eigenpie seems to be the best solution currently available, with each LST having its own independent LRT without worrying about making a wedding dress for others. LSTs with higher interest rates, such as mETH, can also continue to leverage their advantages.

When will Mint's mstETH be available for trading on DEX? Will it be listed on Pendle?

It is obvious that the project team has great willingness and ability to promote these, because all of these can bring generous bribe income to the subDAOs under Magpie, such as Cakepie and Penpie.

If you are not familiar with the architecture of Magpie, you can refer to our previous article.

https://twitter.com/NintendoDoomed/status/1680457697576255489

D. Expected Returns

On the income side, let's first take a look at the token economy:

• IDO: 40%

• Airdrop: 10%

• Incentive 35%

• Magpie Treasury: 15% (as usual, not for sale, staking dividends go to vlMGP)

It is basically a FairLaunch operation, with the difference being that currently most Fairlaunch whitelists have more pre-determined entries, while the IDO whitelist for this one mostly provides transparency to TVL providers.

The rights provided to TVL providers are:

1. Airdrop of 10% of the total amount