Project Name: Magpie XYZ

Network Support: Arbitrum, Binance Smart Chain

Project Type: Multi-chain Yield Provider Platform

Token Symbol: $MGP (Native Cross-Chain Token)

Cryptocurrency Market Rank: #752

Market capitalization: Approximately $29.3 million

Fully diluted value (FDV): Approximately $92.2 million

Circulating Supply: 319.44 million MGP (31.94% of total supply)

Total supply: 1 billion MGP

Opening remarks

Magpie XYZ, a leading multi-chain yield protocol, recently announced a strategic integration with Ethereum re-staking protocol EigenLayer. This major move gave birth to SubDAO Eigenpie, which greatly improved the capabilities of re-staking services by using EigenLayer technology. It is also worth noting that Eigenpie is preparing to launch its governance and profit sharing token EGP.

This report provides an in-depth analysis of the Magpie ecosystem, aiming to fully understand its potential impact in the decentralized finance (DeFi) space and its future development prospects.

Project Overview: Magpie XYZ Ecosystem

Magpie XYZ represents a comprehensive DeFi protocol ecosystem that enhances yield and veTokenomics models on multiple blockchains. Magpie, as its flagship protocol, developed by Wombat Exchange, plays a core role. Key features include:

● Innovative veTokenomics: This model breaks through the traditional user-centric model and innovatively combines user interests and protocol growth.

● mWOM Token Conversion: Provides users with the convenience of staking and earning without having to lock up funds for a long time.

● Diversified income opportunities: Allows deposit of multiple assets to obtain additional income.

● Vote-Locked MGP (vlMGP): Improves the cost-effectiveness of governance participation.

Features of Wombat Exchange

● Multi-chain capabilities: Known for its scalability and low slippage transactions.

● Unilateral pledge: dedicated to providing services for stablecoins and anchored assets.

● veWOM Tokens: Provide additional benefits depending on the user’s lock-up period.

Profit distribution from Wombat Exchange:

● 80% allocated to liquidity providers

● 12% allocated to mWOM stakers

● 8% allocated to vlMGP holders

MGP Token Economics: Magpie’s Governance and Revenue Sharing Framework

As the core of the Magpie protocol, the MGP token undertakes key governance and revenue sharing functions. Its design reflects a balanced mechanism that aims to optimize user participation, revenue distribution, and long-term ecosystem sustainability. Through this approach, Magpie aims to achieve a balanced ecosystem that both incentivizes user participation and ensures long-term stability and growth of the protocol.

main feature

● Token name: MGP

● Network support: Arbitrum, Binance Smart Chain

● Total supply: 1 billion MGP

● Circulating Supply: 319.44 million MGP (31.94% of total supply)

● Market value: $22.3 million

● Fully diluted value (FDV): $70.2 million

● Total locked value (TVL): $19.57 million

● Cryptocurrency Market Ranking: #883

Vote-Locked MGP (vlMGP) Mechanism

Vote-Locked MGP is a locked form of MGP tokens that can be converted at a 1:1 ratio on Magpie.

Advantage:

● Including platform revenue sharing

● $MGP staking rewards

● Enhance voting influence

● Participate in the governance of the entire community

● And obtaining bribes and cancelling rewards.

The “Start Unlocking” process will start a 60-day cool-down period during which vlMGP will gradually become a liquid asset.

Holders can choose to pay a certain percentage of penalty to achieve early "forced unlocking". The penalty will account for 80% of the total locked MGP from the first day of locking and will decrease over the next 60 days.

During this 60-day cooling-off period, holders can still obtain passive income, but their voting rights will be temporarily frozen. After the cooling-off period, vlMGP will be fully unlocked without paying any penalties, and all token rights will be fully restored.

MGP Token Distribution

● Liquidity Mining: 450 million tokens (45%), with a maximum unlocking of 2% per month.

● Team and advisors: 175 million tokens (17.5%), distributed over four and a half years after the six-month cliff.

● Community Treasury: 100 million tokens (10%), unlocked in blocks every 5 years.

● Ecosystem: 90 million tokens (9%), unlocked in blocks every 3 years.

● PancakeSwap IFO: 70 million tokens (7%), 30% initially unlocked, then unlocked quarterly.

● Strategic Sale: 50 million tokens (5%), distributed quarterly over three years after the 3-month cliff.

● Airdrop: 30 million tokens (3%), 5% initially unlocked, and then distributed annually and weekly.

● PancakeSwap Syrup Pool: 24 million tokens (2.4%), unlocked in blocks every 2 months.

● Liquidity and Exchange: 11 million tokens (1.1%), 100% initially unlocked.

Ownership

Source: https://cryptorank.io/price/magpie/vesting

Planned Sub-DAO Model in Magpie Ecosystem

Magpie's sub-DAO model represents a significant innovation in the decentralized finance (DeFi) ecosystem, creating specialized sub-decentralized autonomous organizations to enhance veTokenomics-based protocols. This model creates a symbiotic relationship between Magpie and its supported sub-DAOs, driving mutual growth for both parties and contributing to the broader DeFi space.

Key features include:

● Strategic partnership: achieve mutual benefit through collaboration.

● Treasury and governance benefits: Receive 20% of the token supply after vesting of interests in each child DAO.

Benefits for vlMGP Holders

● Access to SubDAO’s IDO: Priority access to the first DEX sale of SubDAO tokens.

● Revenue Sharing: Share the revenue generated by SubDAO.

● Voting rights: Have significant influence in SubDAO internal decision-making.

Overview of current sub-DAOs

Penpie: Maximize your profits with Pendle Finance.

● Key innovation: Improving annualized rate of return (APR) and enabling conversion of mPENDLE tokens through Pendle Finance.

● PNP Token: As the core of governance, vlPNP enhances passive income and influence on governance.

● Total locked value (TVL): US$143.64 million.

Radpie: Optimizing returns in Radiant Capital

● Innovation highlights: Use dLP tokens for governance and distribute RDNT tokens, and increase returns through mdLP conversion.

● RDP token: With governance functions, vlRDP provides passive income and opportunities to participate in governance.

● Total locked value (TVL): USD 23.66 million.

Cakepie: Enhancing the Governance and Profitability of PancakeSwap

● Core Features: Cakepie’s bribe market provides vlCKP holders with a unique platform to influence the distribution of CAKE and obtain rewards more efficiently than traditional veCAKE locking methods.

● CKP and vlCKP tokens: have a key impact on Cakepie, vlCKP allows participation in governance and the Cakepie bribe market. Protocols on PancakeSwap can gain additional voting support by offering bribes to vlCKP holders, liquidity providers are able to enjoy potentially higher annualized returns (APR) without locking up CAKE, and governance voters can strengthen their influence in a cost-effective manner through CKP tokens.

● Total locked value (TVL): $16.41 million.

Upcoming Sub-DAO: Eigenpie

As an innovative sub-DAO under the Magpie framework, Eigenpie is committed to improving the functionality and user interaction experience of Ethereum through integration with EigenLayer technology, and adopts a novel liquidity re-staking strategy.

Analysis of Liquidity Re-Pledge Protocol:

1. Basket Liquidity Re-Pledge (bLRT)

a. Function: Deposit multiple LSTs into the same LRT to achieve asset diversification.

b. Advantages: Provides asset diversity, integrated liquidity and user convenience.

c. Challenges: There are management complexities and potential concentration risks.

2. Isolated Liquidity Re-Pledge (iLRT)

a. Function: Store an LRT for a single LST.

b. Advantages: Make risks controllable, simplify the incentive acquisition process, and enhance the composability of DeFi.

c. Challenge: May cause liquidity dispersion.

3. Super Liquid Re-Pledge

a. Concept: A new approach to LP position re-pledge, details to be explored in depth.

Eigenpie’s Segregated Liquidity Re-Pledge Method:

Eigenpie innovates with a segregated liquidity re-staking model, allowing users to deposit LST and receive its unique re-staking version. This move aims to add an additional layer of income to Ethereum investment and improve capital efficiency.

To reduce the risks associated with individual LSTs, Eigenpie has customized exclusive re-staking variants for each LST, effectively reducing potential risks within the platform.

EGP Token Economic Model

● Token name: Eigenpie Token (EGP)

● Total supply: 10 million

● Token type: ERC-20

● Distribution plan: 40% for the first decentralized exchange token issuance (IDO), 35% for community incentives, 15% for Magpie Treasury, and 10% for early supporter airdrops

EGP acts as a governance and revenue distribution token, driving decentralized decision-making and financial incentives. Through extensive integration with various protocols, it aims to enhance its practicality and attract a broad user base.

Eigenpie has partnered with key players in the DeFi space and is currently undergoing a full audit. In addition, it is also implementing advanced multi-signature contract mechanisms to improve the security and integrity of the platform.

The launch of Eigenpie focuses on enhancing user engagement, improving reward structures, and promoting interaction with the EigenLayer infrastructure.

Furthermore, Eigenpie plans to implement a reward system to recognize and encourage members’ active participation, especially in terms of LST deposits and user referrals. Those interested in Eigenpie’s development can find detailed information about the EGP IDO here.

According to the latest information on its social media, Eigenpie has opened the LST pre-deposit window, and users can pre-deposit specific LST such as stETH, rETH, mETH and sfrxETH. This opportunity lasts until 7 pm UTC on February 9.

For every ETH worth of LST deposited, users will earn one Eigenpie point every hour, with point rewards doubling over the first 15 days. These points will contribute to 10% of the total EGP supply and 60% of the EGP token IDO. Starting at 8pm UTC on February 5, depositors can also start accumulating EigenLayer points.

Bullish fundamentals

● The $MGP ecosystem is growing rapidly: Within 12 hours of Eigenpie’s deposit window opening, more than $30 million worth of $ETH liquid staked tokens were re-staked.

● Total locked value (TVL) is growing steadily: showing the health and attractiveness of the ecosystem.

● $MGP community is active: Strong community participation is a key factor for the success of the $MGP ecosystem.

● Magpie’s DAO and Sub-DAO model: Focuses on stabilizing governance and promoting user participation by creating new pie tokens for each project. This model helps enhance liquidity and balance between mPENDLE and PENDLE.

Bearish fundamentals

● Fierce market competition: Many projects similar to Convex, Aura Finance and Yearn Finance focus on yield enhancement, posing a challenge to $MGP.

● Small market capitalization: Due to fierce competition, the market value of $MGP is relatively small.

● High TVL concentration: Most of the TVL is concentrated in Penpie, which is closely related to the success of Pendle, indicating concentrated risk.

● EigenPay faces competition: As a strategy to seize the staking market, EigenPay faces competitive pressure from many new projects.

● Limited exchange exposure: $MGP has not yet been listed on major exchanges, limiting its market exposure.

● Intense competition in pledge services: Numerous entities in this field offer similar services, which intensifies competition.

● Pledged asset lock: The re-pledged ETH will be temporarily locked and cannot be converted back immediately.