Eigenpie: New Opportunities in the LRT Craze

Recently, Eigenpie, a sub-project of Magpie targeting LRT, launched a points activity, offering generous rewards to liquidity providers. As one of the more outstanding projects in the LRT track, Eigenpie not only has unique features, but its previous sub-projects have also achieved considerable returns, making it worth attention.

This article will delve into the participation methods, operational mechanisms, development prospects, and potential returns of Eigenpie, helping you gain a comprehensive understanding of the project and make informed decisions.

Participation Method

Currently, users can earn multiple benefits by depositing stETH and other LST.

1. Eigenpie integration, corresponding to a total of 10% airdrop
2. Eigenlayer Points (available for deposit after February 5)
3. Eigenpie has a total IDO allocation of 24%, with an initial valuation of 3 million USD.
4. The basic yield of the stored LST (e.g., 7% APR for mETH)

Points will be enhanced based on the scale of the deposit, with larger scales resulting in higher increases, up to a maximum of two times. Therefore, it is recommended that users choose larger deposit pools to participate.

Operating Mechanism

Eigenpie adopts an Isolated LRT (ILRT) model, issuing corresponding tokens for each LST to isolate risks. This design aims to address the risk accumulation issues that may arise from Eigenlayer supporting multiple LSTs.

Although the isolation of risks also isolates liquidity, this does not pose a significant issue. One of the advantages of LRT supporting LST over LRT supporting native staking is the ability to fully utilize the liquidity of the underlying LST. Separate trading pairs (such as mrETH/rETH, mmETH/mETH) are actually more beneficial for collaborating with LST projects to incentivize liquidity.

Development Prospects

Although the launch of Eigenpie is relatively late, it fills the gap in market demand: LSTs that have joined Eigenlayer are eager to participate in the LRT craze, and Eigenpie currently seems to be the best solution. Each LST has its own independent LRT, eliminating concerns about interests being encroached upon by other projects. LSTs with higher yields, like mETH, can continue to leverage their advantages.

The project team has a strong willingness and capability to promote related developments, such as launching trading on decentralized exchanges and collaborating with Pendle. These initiatives will bring substantial benefits to the sub-projects under Magpie.

Expected Returns

The token distribution plan is as follows:

• IDO: 40%
• Airdrop: 10%
• Incentive: 35%
• Magpie Reserve: 15% (usually not sold, used for staking dividends to vlMGP holders)

This is essentially a fair distribution model, with the special feature that most of the IDO whitelist is explicitly allocated to liquidity providers.

Liquidity providers will receive:

• 10% of total airdrop
• 60% of the IDO share (IDO accounts for 40% of the total, initial valuation of 3 million USD)

In other words, 34% of the total amount (10% + 60% * 40%) will be allocated to liquidity providers, accounting for about 70% of the initial circulation. There will also be no pressure from venture capital sell-offs in the future.

Given the current popularity of the LRT track, the potential value of Eigenpie should not be underestimated. Taking RSTK as an example, with a TVL of only 7 million USD, its market capitalization has reached 35 million USD, with a fully diluted valuation as high as 180 million USD. The final TVL of Eigenpie is likely to exceed that of RSTK. If we refer to the valuation of RSTK, the total earnings for liquidity providers could reach 60 million USD.

Assuming that the tokens will be issued in two months, the average TVL will be 200 million USD, with an annualized return rate of up to 180%. This does not include the earnings from the underlying Eigenlayer points. Early participants will be able to receive double points rewards in the first 15 days.

Reviewing the IDO performance of Magpie's previous sub-projects:

• Penpie: IDO valuation of 3 million USD, increase of 14 times
• Radpie: Average valuation of $7.5 million for two rounds of IDO, with an increase of 1.4 times.
• Cakepie: IDO valuation of $20 million, a rise of 2.4 times

In this venture into the broader LRT market, Eigenpie not only adopts a lower initial valuation but also offers liquidity providers airdrops and IDO shares that far exceed those of previous projects, promising to generate higher returns.

Summary

• Participating in airdrops requires selecting a large deposit pool to gain higher benefits.
• The unique mechanism is ILRT, which effectively isolates the risks of each LST.
• Advantages include fully leveraging the resources accumulated by Magpie in Pendle and Pancake.
• Adopt a transparent and fair issuance model, with the majority of rights clearly allocated to liquidity providers.