Eigenpie Project Analysis: A New Star in the LRT Track

Eigenpie, as a project focused on the liquid staking token (LST), recently launched a points activity, bringing new opportunities to the LRT (liquid staking token re-staking) track. This article will delve into Eigenpie's operational mechanisms, potential prospects, and possible return expectations.

Participation Methods and Earnings

Currently, users can earn multiple returns by depositing LSTs such as stETH:

1. Eigenpie integration, corresponding to a 10% token airdrop.
2. Eigenlayer points (after the deposit opens on February 5)
3. Eigenpie has a total of 24% IDO share, valued at 3 million USD.
4. The basic earnings of stored LST

It is worth noting that points will provide additional gains based on the scale of participation, up to a maximum of two times. Therefore, users are advised to concentrate their participation to achieve higher returns.

Unique Mechanism

Eigenpie adopts the mechanism of isolating liquidity re-staked token (ILRT), issuing corresponding tokens for each LST to isolate risks. This approach effectively addresses the overall risk issues faced by traditional LRT projects, while also providing independent market opportunities for each LST.

Although this approach may affect liquidity, it actually offers more possibilities for cooperation with LST project parties, which is beneficial for incentivizing the liquidity of specific token pairs.

Development Prospects

Although Eigenpie entered the market relatively late, it fills an important market gap. The LSTs currently launched on Eigenlayer urgently need to participate in the LRT narrative, and Eigenpie provides an ideal solution. Each LST has its own independent LRT token, avoiding risk contagion while retaining their respective advantages, such as the higher interest rates of mETH.

In the future, project teams are likely to actively promote the listing and trading of newly minted tokens (such as mstETH) on decentralized exchanges, which will bring more profit opportunities to the Magpie ecosystem.

Token Economics and Revenue Expectations

The token distribution plan of Eigenpie is as follows:

• IDO: 40%
• Airdrop: 10%
• Incentive: 35%
• Magpie Reserve: 15%

This basically aligns with the principle of fair issuance, with the special aspect being that the majority of IDO shares are allocated to TVL providers. Specifically, TVL providers will receive:

• 10% of the total airdrop
• 60% of the IDO allocation (IDO accounts for 40% of the total), valued at 3 million dollars

Approximately 34% of the tokens will be allocated to TVL providers, accounting for about 70% of the initial circulation. Considering the current popularity of the LRT track, Eigenpie's potential value could be quite considerable.

If we reference the valuations of other LRT projects and assume that the token will be issued in two months, with an average TVL of $200 million, early participants may achieve an annualized return of approximately 180%, not including the additional earnings from Eigenlayer points.

Conclusion

Eigenpie brings innovative solutions to the LRT track, with its ILRT mechanism effectively isolating the risks of various LSTs. The equity ratio provided to TVL providers by the project is quite considerable, and with the support of the Magpie ecosystem, Eigenpie occupies a unique position in the highly competitive LRT market. For users interested in participating, centralized participation for higher point gains is a wise choice. However, like all cryptocurrency investments, participants should fully understand the associated risks and make decisions based on their own circumstances.