Eigenpie: A New Player in the LRT Track

Eigenpie, as a sub-project targeting LRT, has launched a points activity today, offering the largest profit opportunity to TVL providers so far. This project is not only unique but also has an excellent performance in terms of returns from its predecessor, thus the value of its configuration is worth paying attention to.

This article will provide an in-depth analysis of the participation methods, operational mechanisms, development prospects, and expected returns of Eigenpie, helping you maximize your profits.

How to Participate

Currently, depositing stETH and other LSTs can yield fourfold returns:

1. Eigenpie integration, corresponding to 10% of the total amount airdrop.
2. Eigenlayer Points (available for deposit after February 5)
3. Eigenpie has a total of 24% IDO allocation, with a relatively low valuation.
4. The base yield of stored LST (such as 7% APR for mETH)

Points will provide additional rewards based on the scale of participation; the larger the scale, the more rewards, up to a maximum of double. It is recommended to participate in a concentrated manner to obtain higher returns.

Operating Mechanism

Eigenpie adopts an Isolated LRT (ILRT) model, issuing corresponding tokens for each LST to isolate risks. The necessity of this approach lies in the fact that if an LRT project accepts multiple LSTs, it needs to bear the risks of all underlying LSTs. If any one LST encounters issues, it could severely impact the entire project.

Although isolation risk also means isolation of liquidity, this does not constitute a problem. The LRT that supports LST, compared to the LRT that supports native staking, has a significant advantage in fully utilizing the liquidity of the underlying LST. Standalone trading pairs are actually more beneficial for collaborating with LST project parties to incentivize liquidity.

Development Prospects

Although the launch of Eigenpie is relatively late, it fills an important market gap: LSTs that have joined Eigenlayer are eager to participate in the LRT craze, and Eigenpie currently seems to be the best choice. Each LST has its own independent LRT, without worrying about doing favors for others. LSTs with higher yields, like mETH, can continue to leverage their advantages.

The project team clearly has strong motivation and capability to promote the exchange listing and other collaborations, as these can bring substantial profits to its other sub-projects.

Expected Returns

The token economic model is as follows:

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

This is essentially a fair distribution model, with the special aspect being that the IDO whitelist is largely granted to TVL providers.

TVL providers will receive:

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

In other words, 34% of the total will be given to TVL providers, accounting for about 70% of the initial circulation. There will also be no pressure from venture capital sell-offs in the future.

Considering the current popularity of the LRT track, Eigenpie's potential valuation could be quite significant. If we reference the valuation levels of other projects, the total profit for TVL providers could reach around $60 million.

Assuming the token is issued in two months, the average TVL will be 200 million USD, and the annualized return can reach 180%, not including the earnings from the underlying Eigenlayer points. Early participants can also receive a 2x points increase in the first 15 days.

Summary

• Participating in airdrops requires consolidating funds to obtain higher rewards.
• The unique mechanism is ILRT, which isolates the risks of each LST.
• Advantages include fully utilizing existing resources to accelerate development.
• Most of the rights are clearly allocated to the TVL providers, and the IDO quota is transparent and fair.