Eigenpie: The Rising Star in the LRT Track

Eigenpie, as a subproject aimed at LRT, has launched a points activity today, providing the greatest profit opportunity for TVL providers in the current LRT project. This project not only has its own characteristics but also has previously achieved considerable profits in related subprojects, making its configuration value worth paying attention to.

This article will provide an in-depth analysis of the participation methods, mechanism design, development prospects, and expected returns of Eigenpie, helping readers clearly understand how to maximize their profits.

A. Participation Method

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

• Eigenpie integration, corresponding to a distribution of 10% of the total amount.
• Eigenlayer Points (after Eigenlayer opens deposits on February 5)
• Eigenpie corresponds to 24% of the total IDO share, with a 3M FDV valuation.
• The basic yield of the stored LST (for example, the APR of mETH is 7%)

Points will provide gains 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 better returns.

B. Mechanism Design

Eigenpie focuses on the Isolation LRT (ILRT) strategy, issuing corresponding tokens for each LST to isolate risks.

Considering that multiple LSTs are currently supported on Eigenlayer, if an LRT project indiscriminately accepts all LSTs, it must bear the risks of all underlying LSTs. Once a certain LST encounters a security issue, it could severely impact the entire project.

Therefore, Eigenpie's ILRT solution can effectively isolate risks. Although this also means the isolation of liquidity, it does not actually cause significant problems. The LRT that supports LST has a major advantage over the LRT that supports native staking, which is the ability to fully utilize the liquidity of the underlying LST. Separate trading pairs such as mrETH/rETH and mmETH/mETH are more conducive to collaborating with LST project parties to incentivize liquidity.

C. Development Prospects

Although Eigenpie launched relatively late, it fills an important market demand: LSTs that have 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 dressing others. LSTs like mETH, which have higher interest rates, can also continue to leverage their advantages.

The project team is likely to actively promote the trading of minted tokens like mstETH on DEXs, as well as their launch on platforms like Pendle. These initiatives will bring substantial profits to related sub-projects.

D. Expected Returns

The token economic structure is as follows:

• IDO: 40%
• Distribution: 10%
• Incentive: 35%
• Reserves: 15% (usually not for sale, used for staking rewards)

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

TVL providers will receive:

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

34% of the total supply will be given to TVL providers, accounting for approximately 70% of the initial circulation, and will not face pressure from venture capital in the future.

Currently, the LRT track is very popular. For example, RSTK, which has only 7 million USD in TVL, has a market cap of 35 million USD and an FDV of 180 million USD. The final TVL of Eigenpie is likely to far exceed that of RSTK. If we refer to the FDV of RSTK, the total profit for TVL providers could reach 60 million USD.

Assuming the token is issued two months later with an average TVL of 200M USD, the annualized yield could reach 180%, not including the earnings from the underlying Eigenlayer points. Participants in the early 15 days will also receive a 2x points increase.

Review the previous performance of related sub-projects' IDOs:

• Penpie: IDO 3M FDV, 14x increase
• Radpie: Average 7.5M FDV, 1.4x increase
• Cakepie: IDO 20M FDV, increase of 2.4 times

This entry into the larger LRT market not only provides a low valuation of 3M FDV, but also offers distribution and IDO shares for TVL providers that far exceed previous years, making the profit prospects worth looking forward to.

Summary

• Participation requires concentration to achieve higher amplification.
• The special mechanism is ILRT, isolating the risks of each LST.
• Advantages include fully utilizing accumulated ecological resources to accelerate development.
• Most rights are clearly given to TVL providers, and the IDO quota is transparently fairly issued.