LRT Project Eigenpie: How to Maximize Returns

Recently, Eigenpie launched a points program, which is one of the measures that provide the greatest benefits to TVL providers in the current LRT project. The project is unique, and combined with the previous excellent performance of Magpie's sub-DAO, it has a high value configuration.

This article will provide an in-depth analysis of Eigenpie's participation strategies, operational mechanisms, development prospects, and expected returns, helping you understand how to maximize your profits.

Participation Strategy

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

1. Eigenpie integration, corresponding to a total of 10% airdrop.
2. Eigenlayer Points (after Eigenlayer opens deposits on February 5)
3. Eigenpie corresponds to 24% of the total IDO allocation, with a 3M FDV undervaluation.
4. The base earnings of the stored LST (such as mETH APR being 7%, can still continue to enjoy)

Points will be provided based on the total scale of the fleet; the larger the scale, the higher the increase, up to a maximum of two times. It is recommended to choose a larger fleet to obtain more benefits.

Operating Mechanism

Eigenpie focuses on isolating LRT (ILRT) and issues corresponding tokens for each LST to mitigate risks. Currently, Eigenlayer has launched multiple LSTs, and if an LRT project broadly accepts all LSTs, it must bear the risks of all underlying LSTs. Once a security issue arises with a certain LST, it can have a devastating impact on the project.

The ILRT mechanism of Eigenpie can effectively isolate risks. Although this also isolates liquidity, the LRT supporting LST has an advantage over the LRT supporting native staking in that it can fully utilize the liquidity of underlying LSTs. Separate trading pairs like mrETH/rETH, mmETH/mETH are actually more beneficial for collaborating with LST project parties to incentivize liquidity.

Development Prospects

The advantage of Eigenpie lies in filling the gap in market demand. The LSTs launched on Eigenlayer are eager to participate in the LRT narrative, and Eigenpie currently appears to be the best solution. Each LST has its own independent LRT, so there is no need to worry about making sacrifices for others. LSTs with higher interest rates, like mETH, can also continue to leverage their advantages.

The project team has a strong willingness and ability to promote the trading of tokens such as mstETH on DEX and launch them on other platforms, as these can bring substantial profits to Magpie's sub-DAOs like Cakepie and Penpie.

Expected Returns

The token economic structure is as follows:

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

This is basically an operation with fair distribution, but the difference is that currently, most fair distribution whitelists have many predefined conditions, while Eigenpie's IDO whitelist mostly explicitly grants access to TVL providers.

The rights that TVL providers can obtain:

• 10% airdrop of the total supply
• 60% of the IDO share (IDO accounts for 40% of the total, $3M 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 issue of venture capital selling pressure in the future.

Currently, LRT narrative is booming, with only $7M TVL, $RSTK has a market cap of $35M and an FDV of $180M. Eigenpie's final TVL is likely to far exceed RSTK. If we benchmark against $RSTK's FDV, the total profit for TVL providers could reach $60M.

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

Summary

• Participating in airdrops requires selecting a large-scale fleet to achieve higher increments.
• The unique mechanism is ILRT, which can isolate the risks of each LST.
• Advantages include fully utilizing the resources accumulated by Magpie on other platforms to accelerate development.
• Most of the rights are clearly granted to TVL providers, with transparent and fair issuance of IDO quotas.