Eigenpie: How the new player in the LRT market brings maximum returns to TVL providers?

Eigenpie, as one of the platforms providing maximum benefits to TVL providers in the LRT project, has launched a points activity today. The project has unique features, and coupled with the substantial profits achieved by its previous sub-DAO, the value of the configuration is quite remarkable.

This article will delve into the participation methods, operational mechanisms, development prospects, and expected returns of Eigenpie, helping you to maximize your profits.

A. Participation Method

Currently, depositing stETH and other LSTs can yield quadruple rewards:

1. Eigenpie airdrop corresponding to 10% of the total amount.
2. Eigenlayer Points (after Eigenlayer opens deposits on February 5)
3. Eigenpie corresponds to a total of 24% IDO share, 3M FDV undervaluation.
4. The basic yield of the stored LST (such as 7% APR for mETH)

The rewards will be provided based on the total scale of deposits, with larger scales resulting in higher increments, up to a maximum of double. It is recommended to concentrate deposits to achieve higher returns.

B. Operating Mechanism

Eigenpie focuses on isolating LRT (ILRT) operations, issuing corresponding tokens for each type of LST to mitigate risk. The necessity of this approach lies in the fact that multiple LSTs are currently listed on Eigenlayer, and if an LRT project broadly accepts all LSTs, it must bear the risks of all underlying LSTs. If a security issue arises with a specific LST, it could potentially deal a devastating blow to the entire project.

Although isolation risks also mean isolating liquidity, this is not an issue. One of the advantages of LRT supporting LST, compared to LRT supporting native staking, is that it can fully utilize the liquidity of the underlying LST. Independent trading pairs like mrETH/rETH and mmETH/mETH are more conducive to collaborating with LST project parties to incentivize liquidity.

C. Development Prospects

Eigenpie may have entered the market late, but it fills an important demand gap: all LSTs listed on Eigenlayer are eager to participate in the LRT narrative, and Eigenpie currently seems to be the best solution. Each LST has its own independent LRT, so there is no need to worry about dressing up for others. LSTs with higher interest rates, like mETH, can also continue to leverage their advantages.

As for when the minted mstETH and other tokens can be traded on DEXs and whether they will be listed on certain platforms, the project team clearly has a strong willingness and ability to advance these processes, as they can bring substantial profits to the sub-DAOs under Magpie.

D. Expected Returns

The token economic distribution is as follows:

• IDO: 40%
• Airdrop: 10%
• Incentive: 35%
• Magpie Reserve: 15% (typically not sold, staking dividends given to vlMGP)

This is basically a fairly distributed operation, with the difference being that most fair distribution whitelist currently has many restrictions, while this project's IDO whitelist mainly explicitly grants it to TVL providers.

The rights that TVL providers can obtain include:

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

This means that 34% of the total amount (10% + 60% * 40%) will be given to TVL providers, accounting for about 70% of the initial circulation, and there will also be no issues with venture capital sell pressure in the future.

Currently, LRT narratives are very popular, and projects with only $7M in TVL can achieve a market value of $35M and an FDV of $180M. Eigenpie's final TVL is likely to far exceed this figure, and if it benchmarks against the project's FDV, the total profits for TVL providers could reach $60M.

Assuming the token is issued two months later, the average TVL will be 200M USD, which can also achieve an annualized return rate (APR) of 180%, not including the earnings from the underlying Eigenlayer points. Participating as an early provider in the first 15 days also has a 2x point increase.

Looking back at the price increase of Magpie's previous sub-DAO IDO to date:

• Some DAO, IDO 3M FDV, 14 times
• Another sub-DAO, two rounds of IDO with an average FDV of 7.5M, 1.4 times.
• The third sub-DAO, IDO 20M FDV, 2.4 times

This expansion into the larger 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 greater than previous projects, with returns expected to replicate or even surpass past achievements.

Summary

• Participating in airdrops requires concentrated deposits to achieve greater increases.
• The unique mechanism is ILRT, isolating the risks of each LST.
• Advantages also include the ability to fully utilize accumulated resources to accelerate development.
• The vast majority of rights are clearly granted to the TVL providers, with transparent IDO quotas for fair distribution.