Radpie: RDNT's "Convex" is about to launch

Recently, after the listing of the Penpie token, its price surged by five times. The Magpie team has announced the launch of Radiant's "Convex" product - Radpie in the form of a sub-DAO. With multiple favorable factors at play, can Radpie replicate or even surpass the performance of PNP? This article will provide you with a detailed introduction to Radpie's operational mechanism, product advantages and disadvantages, market narrative, and participation methods.

Radpie Operating Mechanism

The relationship between Radpie and RDNT is similar to that of Convex and Curve. Radiant, as a cross-chain lending protocol, has taken special measures in terms of liquidity incentives. Users need to indirectly lock a certain proportion of RDNT to obtain mining rewards. Specifically, users need to hold dLP equivalent to 5% of the deposit amount (an 80% RDNT / 20% ETH Balancer pool LP). If the proportion is below 5%, users will not be able to receive RDNT emission rewards.

Radiant's one-click looping feature will automatically borrow to purchase dLP when the dLP ratio is insufficient. This mechanism provides good sustainability for RDNT, as users are providing long-term liquidity for RDNT while mining. dLP has a lock-up period requirement; the longer the lock-up time, the higher the APR.

The role of Radpie is to raise dLP and share it with DeFi miners, allowing miners to participate in mining without holding RDNT. This is similar to the model of Convex sharing veCRV. The raised dLP will be converted into mDLP tokens, similar to how CRV is converted into cvxCRV through Convex.

For RDNT holders, dLP can be converted to mDLP through Radpie, enjoying high yields while maintaining RDNT positions. This is also beneficial for the Radiant project, as converting to mDLP permanently locks it, supporting the long-term liquidity of RDNT and helping to attract more small users.

However, Radiant is different from Pendle/Curve in that it does not determine incentive distribution through voting, thus lacking the bribery income component. However, Radiant has clearly stated that it will continue to promote the construction of the DAO, and in the future, governance rights are expected to gain more value. Radpie, which holds a large amount of governance rights (dlp), may naturally benefit.

Product Advantages and Disadvantages Analysis

As a project standing on the shoulders of giants, Radpie has relatively clear upper and lower limits. In horizontal comparison, Aura's FDV is about 35% of Balancer's, and Convex is about 14% of Curve's. Considering that RDNT is a project with an FDV of $300 million and has already been listed on Binance, Radpie's valuation has a certain comparability. According to the convention of the Magpie sub-DAO, the FDV of Radpie's IDO is expected to be below $10 million, providing considerable profit space for IDO participants.

The disadvantage of Radpie lies in its lack of horizontal scalability like that of the parent DAO Magpie. However, it will benefit from the internal and external circulation system of Magpie's subsidiary DAOs.

Market Narrative

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

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

2. ARB Airdrop: The RDNT DAO has decided to airdrop 40% of the ARB received to the newly locked dLPs, and 30% will be evenly airdropped to the dLPs that continue to exist over the next year. Radpie is right on time to participate in sharing this feast of over 2 million ARB.

3. Supranational Leverage Governance: A large amount of RDP will be allocated to the Magpie treasury. The profits generated by these tokens will be distributed to MGP holders, while MGP holders can participate in the decision-making of the Radiant DAO through the controlled RDP.

4. Internal and external dual circulation: This is a unique system created by Magpie's expansion using the sub-DAO model under the governance track. For example, the mdLP/dLP trading pair may be deployed on Wombat, obtaining more WOM incentive emissions by bribing vlMGP holders. These emitted tokens remain within the Magpie system, reducing net external expenditures.

5. Sub-DAO: The Sub-DAO model can inherit the reputation of the parent DAO, provide an independent token to fully leverage the advantages of Tokenomics, and offer more investment options to the market.

How to Participate in Magpie IDO

Referring to the IDO allocation of Penpie, the participation methods for future Magpie series IDOs can be divided into:

Long-term participation: Buy and hold vlMGP, which is expected to allow participation in all future sub-DAO IDOs of Magpie. However, this method is greatly affected by MGP price fluctuations.

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 obtaining RDP airdrop and IDO shares. If there is an intention to hold RDNT, you can also directly purchase 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 strict peg, and it may not maintain a 1:1 ratio upon exit.

Summary

Radpie, as the "Convex" of RDNT, has its greatest advantages in low valuation and backing by a strong entity. It features five narrative tags: LayerZero, ARB airdrop, super-sovereign leverage governance, internal and external dual circulation, and sub-DAO. The IDO participation methods are diverse, suitable for investors with both long-term and short-term strategies.