Eigenpie: A Rising Star in the LRT Track, How to Maximize Profits?

In the LRT project, Eigenpie has brought unprecedented opportunities for liquidity providers. As a sub-DAO focused on LRT, Eigenpie has launched a points activity today, offering participants multiple channels for returns. This article will delve into the participation methods, operational mechanisms, development prospects, and expected returns of Eigenpie, helping you achieve the best returns in this emerging project.

How to Participate

Currently, depositing stETH and other LSTs into Eigenpie can yield quadruple returns:

1. Eigenpie integration, corresponding to 10% of the total airdrop.
2. Eigenlayer Points (after Eigenlayer opens deposits on February 5)
3. Eigenpie corresponds to a total of 24% IDO share, with a 3M FDV undervaluation.
4. The basic yield of the stored LST (for example, mETH's 7% APR)

It is worth noting that the points will provide gains based on the scale of participation, with larger scales yielding higher increments, up to a maximum of double. Therefore, it is recommended to choose a larger participation group to obtain higher returns.

Operating Mechanism

Eigenpie adopts the Isolated LRT (ILRT) model, issuing a corresponding token for each LST to isolate risks. This mechanism is designed to address the risks that numerous LSTs on Eigenlayer may pose. Traditional LRT projects might need to bear the risks of all underlying LSTs, while Eigenpie's ILRT model effectively resolves this issue.

Although isolating risks also means isolating liquidity, this does not cause serious problems. The LRT supporting LST has an advantage over the LRT supporting native staking in that it can fully utilize the liquidity of the underlying LST. Separate trading pairs (such as mrETH/rETH, mmETH/mETH) are actually more beneficial for collaborating with LST projects to incentivize liquidity.

Development Prospects

Although Eigenpie was launched relatively late, it fills an important market gap. Currently, all LSTs that have joined Eigenlayer are eager to participate in the LRT narrative, and Eigenpie offers the best solution. Each LST has its own independent LRT, without the need to worry about making sacrifices for others. LSTs with higher interest rates, like mETH, can also continue to leverage their advantages in this ecosystem.

In the future, tokens minted by Eigenpie (such as mstETH) are expected to be traded on decentralized exchanges and may even be listed on Pendle. These developments will bring substantial benefits to the Eigenpie ecosystem.

Expected Returns

The token economic model of Eigenpie is as follows:

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

This is basically a fairly conducted operation, with the special feature being that the IDO whitelist is largely granted to TVL providers.

TVL providers will receive:

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

This means that 34% of the total will be given to TVL providers, accounting for about 70% of the initial circulation. In the future, there will also be no risk of venture capital sell pressure.

Considering the current popularity of the LRT track, Eigenpie's potential value should not be underestimated. If we refer to the valuations of other LRT projects, the total profits for TVL providers could reach astonishing levels.

Assuming the issuance of tokens in two months, the average TVL will be 200 million USD, and the annualized return could reach 180% APR, not including the rewards from Eigenlayer points. Early participants can also receive a 2x points boost in the first 15 days.

Summary

• Participating in airdrops requires selecting a larger group to achieve higher growth.
• The unique ILRT mechanism effectively isolates the risks of each LST.
• Make full use of existing resources to accelerate the development of the LRT ecosystem.

Eigenpie adopts a transparent and fair release model, clearly allocating the majority of the rights to TVL providers, offering participants a rare opportunity.