Eigenpie: The Rising Star in the LRT Project

Recently, a new project called Eigenpie has gained widespread attention in the field of LRT (Liquid Restaking Token). As a dedicated project for LRT, Eigenpie has launched a points activity, providing substantial profit opportunities for TVL (Total Value Locked) providers. This article will delve into the participation methods, operational mechanisms, development prospects, and potential returns of Eigenpie.

How to Participate

Currently, users who deposit stETH and other LST (Liquid Staking Tokens) can earn multiple benefits:

1. Eigenpie integration, corresponding to a 10% token airdrop of the total amount.
2. Eigenlayer Points (after Eigenlayer opens deposits on February 5)
3. Eigenpie has a total of 24% participation rights in the IDO share, with a low initial valuation.
4. The basic yield of the stored LST (for example, 7% APR of mETH)

It is worth noting that the points will provide gains based on the scale of participation, with larger scales resulting in higher increases, up to a maximum of two times. Therefore, users are encouraged to participate in a concentrated manner to achieve higher returns.

Operating Mechanism

Eigenpie adopts a unique ILRT (Isolated LRT) mechanism, issuing corresponding Tokens for each type of LST to isolate risks. This mechanism arises from the current support of multiple LSTs by Eigenlayer. If an LRT project broadly accepts all LSTs, it will face the risks of all underlying LSTs.

The ILRT mechanism, while isolating risks, also isolates liquidity. However, this is not an issue because LRTs that support LSTs have one advantage over those that support native staking, which is the ability to fully utilize the underlying LST's liquidity. Separate trading pairs (such as mrETH/rETH, mmETH/mETH) are more conducive to collaborating with LST project parties to incentivize liquidity.

Development Prospects

Although the release of Eigenpie is relatively late, it fills an important market need: all LSTs that go live on Eigenlayer hope to participate in the LRT narrative, and Eigenpie currently seems to be the best solution. Each LST has its own independent LRT, so there is no need to worry about dressing up other projects. LSTs with higher interest rates, like mETH, can also continue to leverage their advantages.

The project team is highly likely to promote the trading of minted tokens like mstETH on DEX, and may even launch on certain platforms. These initiatives could bring substantial profits to the project.

Expected Returns

The tokenomics model of Eigenpie is as follows:

• IDO: 40%
• Airdrop: 10%
• Incentive: 35%
• Project Reserve: 15% (usually used for staking dividends)

This is basically an operation with a fair distribution, with the special aspect being that the IDO whitelist is largely explicitly granted to TVL providers.

The rights that TVL providers can obtain include:

• 10% airdrop of total supply
• 60% of the IDO share (IDO accounts for 40% of the total, initial valuation of 3 million USD)

This means that 34% of the total amount (10% + 60% * 40%) will be given to TVL providers, accounting for about 70% of the initial circulating supply. In the future, there will also be no concerns about venture capital sell pressure.

Considering the heated nature of the LRT field, Eigenpie's potential value could be quite substantial. If we reference the valuations of certain LRT projects that have already gone live, early participants' returns could reach a significantly high level.

Summary

• Participating in Eigenpie requires pooling funds to achieve higher gains.
• The unique mechanism is ILRT, which can isolate the risks of each LST.
• Advantages include the ability to fully leverage the project party's resources in the DeFi ecosystem to accelerate development.
• Adopting a fair issuance model, the majority of the rights are clearly allocated to TVL providers.