Eigenpie: The Rise of a New Star in the LRT Track

Eigenpie, as a subproject focused on LRT, has launched a points activity today. This is currently one of the opportunities that offers the highest returns for liquidity providers in the LRT project. The project is not only unique, but previous related subprojects have also achieved considerable gains, thus it has a relatively high allocation value.

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

Participation Method

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

1. Eigenpie airdrop corresponding to a total of 10%.
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 (for example, 7% APR of mETH)

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

Operating Mechanism

Eigenpie focuses on isolating LRT (ILRT) by issuing corresponding tokens for each LST to isolate risk. This mechanism has emerged because there are currently various LSTs in the market; if an LRT project broadly accepts all LSTs, it has to bear the risks of all underlying LSTs. If a particular LST encounters a security issue, it could severely impact the entire project.

Although isolating risks also isolates liquidity, this will not cause too much trouble. The advantage of LRT supporting LST over LRT supporting native staking is that it can fully utilize the liquidity of the underlying LST. Separate trading pairs are actually more beneficial for collaborating with LST project parties to incentivize liquidity.

Development Prospects

Although the release of Eigenpie is relatively late, it fills an important gap in the market: LSTs that have already joined 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 clothes 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 and launch of new features, as these can bring substantial benefits to other sub-projects.

Expected Returns

The token economic model is as follows:

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

This is basically a fair issuance operation, with the difference being that most IDO whitelists explicitly grant liquidity providers.

Liquidity providers will receive:

• 10% Airdrop of Total Supply
• 60% of the IDO share (IDO accounts for 40% of the total, with a FDV valuation of 3M USD)

In other words, 34% of the total supply will be given to liquidity providers, accounting for about 70% of the initial circulating supply. There will also be no risk of venture capital selling pressure in the future.

Currently, the LRT track is very hot, and even RSTK, which has only 7 million USD in TVL, has a market cap of 35 million USD and an FDV of 180 million USD. Eigenpie's final TVL is likely to far exceed that of RSTK. If we benchmark against RSTK's FDV, the total profit for liquidity providers could reach 60 million USD.

Assuming the token is issued two months later, the average TVL will be 200 million USD, which can also achieve an annualized yield of 180%. This does not include the returns from the underlying Eigenlayer points, and early participants in the first 15 days will have a 2x increase in points.

Summary

• Participating requires pooling funds to achieve higher increments.
• The unique mechanism is ILRT, which isolates the risks of each LST.
• Advantages also include making full use of existing resources to accelerate development.

Most of the rights are clearly granted to liquidity providers, with a transparent and fair issuance model for IDO quotas.