Eigenpie: A Rising Star in the LRT Track

Eigenpie, as a sub-DAO for LRT, has launched a points activity today. This is one of the plans that provides the greatest benefits to TVL providers within the current LRT project. Considering the uniqueness of the project and the excellent performance of previous sub-DAOs, its allocation value is worth paying attention to.

This article will provide an in-depth analysis of the participation methods, operational mechanisms, development prospects, and potential returns of Eigenpie, helping you maximize your profits.

Participation Method

Currently, depositing stETH and other LSTs can yield multiple benefits:

1. Eigenpie integral, corresponding to a total amount of 10% airdrop.
2. Eigenlayer Points (after deposits open on February 5)
3. Eigenpie corresponds to a total of 24% IDO allocation, with a 3M FDV valuation.
4. The basic yield of the stored LST (such as mETH's 7% APR)

Points will provide gains based on the scale of participation; the larger the scale, the higher the increase, up to a maximum of two times. It is recommended to concentrate participation to achieve higher returns.

Operating Mechanism

Eigenpie focuses on isolating LRT (ILRT) and issuing corresponding tokens for each LST to isolate risks. This mechanism effectively addresses the overall risk issues that may arise from the numerous LSTs on the current Eigenlayer.

Although the risk of isolation also implies a dispersion of liquidity, LRT supporting LST has an advantage over LRT supporting native staking in that it can 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 project teams to incentivize liquidity.

Development Prospects

Although Eigenpie was launched relatively late, it fills an important market gap: LSTs that have joined Eigenlayer are in urgent need of participating in the LRT narrative, and Eigenpie currently appears to be the best solution. Each LST has its own independent LRT, eliminating concerns about dressing up for others. LSTs with higher interest rates, like mETH, can also continue to leverage their advantages.

The project team has a strong willingness and capability to promote the development of the platform, which will bring substantial benefits to other sub-DAOs under Magpie.

Expected Returns

Token Economic Structure:

• IDO: 40%
• Airdrop: 10%
• Incentive: 35%
• Magpie Treasury: 15% (usually not for sale, used for staking rewards for vlMGP)

This is basically a fair distribution model, where most IDO whitelist spots are explicitly allocated to TVL providers.

TVL providers can obtain:

• Airdrop of 10% of the total supply
• 60% of IDO shares (IDO accounts for 40% of the total), 3M USD FDV valuation

A total of 34% will be given to TVL providers, accounting for about 70% of the initial circulation, and there will be no future venture capital sell-off pressure.

Currently, the LRT track is gaining significant popularity, with RSTK having a market value of 35 million USD and a FDV of 180 million USD, despite a TVL of only 7 million USD. Eigenpie's final TVL is likely to far exceed that of RSTK. If we refer to RSTK's FDV, the total profit for TVL providers could reach 60 million USD.

Assuming the token is issued two months later, with an average TVL of 200M USD, the annualized return can reach 180% APR, not including the earnings from the underlying Eigenlayer points. The first 15 days as early participants will also have a 2x point increase.

Looking back at the performance of Magpie's previous sub-DAO IDO:

• Penpie: IDO 3M FDV, 14x increase
• Radpie: The average FDV of two rounds of IDO is 7.5M, with an increase of 1.4 times.
• Cakepie: IDO 20M FDV, up 2.4 times

This foray into the broader LRT market not only offers a low valuation of 3M FDV, but also provides airdrops and IDO shares for TVL providers that are several times higher than in previous years, with potential returns possibly reaching new highs.

Summary

• Participating in airdrops requires concentrating resources to achieve higher gains.
• The unique mechanism ILRT effectively isolates the risks of each LST.
• Advantages include fully leveraging the resources accumulated by Magpie in Pendle/Pancake to accelerate development.
• The vast majority of rights are clearly allocated to TVL providers, with a transparent and fair issuance model for IDO quotas.