Radpie: The "Convex" of RDNT is about to launch

Radpie, as the "Convex" of RDNT, is about to be launched, initiating a new round of DeFi innovation. This article will introduce the mechanisms, advantages and disadvantages, narrative highlights, and ways to participate in Radpie.

Radpie Mechanism Analysis

Radpie operates similarly to Convex in relation to Curve. Radiant employs special liquidity incentives that require users to indirectly lock a certain proportion of RDNT to earn mining rewards. Specifically, users need to hold dLP equivalent to 5% of the deposit amount (an 80% RDNT/20% ETH Balancer pool LP). This design provides good sustainability for RDNT, as participating in mining also provides long-term liquidity for RDNT.

The core function of Radpie is to gather dLP and share it with DeFi miners, allowing them to participate in mining without directly holding RDNT. This mechanism is very similar to Convex's sharing of veCRV. For RDNT holders, dLP can be converted into mDLP through Radpie, enjoying high yields while maintaining their RDNT positions. This also has a positive impact on the Radiant project, as the converted mDLP achieves a perpetual cycle lock-up, supporting the long-term liquidity of RDNT while attracting more lightweight users to participate.

However, unlike Pendle/Curve, Radiant currently lacks a mechanism for voting to decide incentive distribution, so there is no bribery income in this part. However, Radiant has made it clear that it will continue to advance the construction of the DAO, and governance rights may gain more value in the future. As a large holder of governance rights (dlp), Radpie naturally hopes to benefit from this.

Analysis of Product Advantages and Disadvantages

As a project that stands on the shoulders of giants, Radpie has relatively clear upper and lower limits for its development. In horizontal comparison, Aura's fully diluted market cap (FDV) is about 35% of Balancer's, while Convex is 14% of Curve's. Considering that RDNT's FDV is $300 million and has been listed on a certain trading platform, Radpie's valuation is also relatively comparable. According to the convention of the Magpie sub-DAO, the FDV of Radpie's IDO may be below $10 million, providing potential profit space for IDO participants.

The main disadvantage of Radpie is its lack of horizontal expansion capabilities like its parent DAO Magpie. However, it will benefit from the internal and external circulation system of Magpie's various sub-DAOs, which will be detailed below.

Narrative Highlights

The core narrative of Radpie includes: LayerZero, ARB airdrop, super-sovereign leveraged governance, dual circulation of internal and external, and sub-DAO model.

1. LayerZero: RDNT is a well-known LayerZero concept coin, and Radpie will also utilize LayerZero to achieve cross-chain interoperability.

2. ARB Airdrop: The RDNT DAO has decided to airdrop a portion of the obtained ARB to new locked and existing dLPs, and Radpie is expected to participate in sharing this airdrop.

3. Super Sovereign Leverage Governance: A large amount of RDP will be allocated to the Magpie treasury to share profits with MGP holders and participate in Radiant DAO decision-making.

4. Dual Circulation: Magpie's unique system formed through the sub-DAO model for expansion. The internal circulation refers to the circulation of tokens remaining within the Magpie ecosystem, while the external circulation refers to the sharing of resources among multiple projects.

5. Sub-DAO model: Inherit the reputation of the parent DAO, fully leverage the advantages of token economics, and provide more investment options for the market.

How to Participate in Magpie Series IDO

1. Long-term holding: Buy and hold vlMGP, which may participate in all future sub-DAO IDOs of Magpie.

2. Short-term arbitrage: By borrowing RDNT through collateral or hedging with short contracts, participate in the mDLP Rush event to convert DLP into mDLP, while also acquiring RDP airdrop and IDO shares.

3. Direct Purchase: If you are optimistic about the underlying token RDNT, you can directly buy in to participate in mDLP Rush.

It should be noted that mDLP/DLP is similar to cvxCRV/CRV, which is a soft peg rather than a hard peg, and may not maintain a 1:1 ratio upon exit.

Summary

Radpie, as the "Convex" of RDNT, has the advantages of low valuation and reliance on a strong ecosystem. It features five major narrative highlights: LayerZero, ARB airdrop, super-sovereign leverage governance, internal and external dual circulation, and sub-DAO. The participation methods are diversified, making it suitable for investors with different risk preferences.