Eigenpie: The Rising Star of the LRT Track, How to Maximize Returns?

Recently, Eigenpie, as a sub-DAO of the Liquid Restaking Token (LRT) project, launched a points activity. This is one of the activities currently providing the highest returns for TVL providers within the LRT project. Given Eigenpie's unique characteristics and the substantial returns from previous related sub-DAOs, this project is worth paying attention to.

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

Participation Method

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

1. Eigenpie Integral, corresponding to 10% of the airdrop share
2. Eigenlayer Points (available for deposit after February 5)
3. Eigenpie accounts for 24% of the total IDO share, with a 3M FDV valuation.
4. The basic yield of the stored LST (e.g., mETH 7% APR)

Points will be increased based on the team size; the larger the team, the higher the increase, up to a maximum of two times. It is recommended to choose a large-scale team to participate.

Operating Mechanism

Eigenpie proposed the concept of isolating LRT (ILRT), issuing corresponding tokens for each LST to isolate risks. The emergence of this mechanism aims to address the potential risk issues brought by the current support of multiple LSTs by Eigenlayer.

While the isolation risk also means isolating liquidity, this does not constitute a major issue. Compared to LRT that supports native staking, LRT that supports LST has the advantage of fully utilizing the liquidity of the underlying LST. Separate trading pairs (such as mrETH/rETH, mmETH/mETH) are more conducive to collaborating with LST project parties to incentivize liquidity.

Development Prospects

Although Eigenpie started relatively late, it fills a market gap: LSTs that have joined Eigenlayer are in urgent need of participating in the LRT narrative, and Eigenpie is currently the best solution. Each LST has its own independent LRT, so there is no need to worry about profit dilution. High-yield LSTs (like mETH) can also fully leverage their advantages.

The project team has a strong desire and ability to promote DEX trading and launch on other platforms, and these initiatives will bring substantial benefits to the sub-DAO under Magpie.

Expected Returns

Token Economic Structure:

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

This is basically a fair release model, with the special feature being that the IDO whitelist is mostly explicitly granted to TVL providers.

TVL providers will receive:

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

34% of the total amount will be given to TVL providers, accounting for about 70% of the initial circulation. In the future, there will also be no risk of venture capital sell pressure.

Currently, the LRT track is very popular, and projects with smaller market capitalizations can also achieve considerable valuations. If Eigenpie can reach a similar level, the total profit for TVL providers could reach $60 million.

Assuming the token issuance occurs in two months, the average TVL will be $200 million, with an annualized yield of up to 180% APR, not including the earnings from Eigenlayer points. Early participation in the first 15 days will also have a 2x points bonus.

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

• Penpie: IDO 3M FDV, up 14 times
• Radpie: Average 7.5M FDV, up 1.4 times
• Cakepie: IDO 20M FDV, up 2.4 times

Eigenpie is entering a larger LRT market with a 3M FDV valuation, offering airdrops and IDO shares to TVL providers that exceed previous projects, and is expected to generate higher returns.

Conclusion

• To participate in the airdrop, you need to choose a large-scale team to gain higher bonuses.
• The ILRT mechanism is a unique advantage of Eigenpie, effectively isolating the risks of each LST.
• The project can fully leverage the resources accumulated by Magpie in Pendle/Pancake to accelerate development.
• Adopt a fair distribution model, with most rights clearly allocated to TVL providers, and IDO quotas being transparent.