The New Favorite in the LRT Field: How Does Eigenpie Achieve Maximum Returns?

Recently, a well-known project launched a sub-protocol for LRT, initiating a points activity. This is one of the best opportunities for TVL providers in the current LRT project to maximize their benefits. The project has unique features, and its prior impressive performance with similar sub-protocols adds significant value to its configuration.

This article will delve into the participation strategy, operational mechanism, development prospects, and expected returns of Eigenpie, helping you to clearly understand how to maximize your returns.

A. Participate Strategy

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

• Eigenpie points, corresponding to 10% of the total airdrop
• Certain large protocol points (after the protocol opened deposits on February 5)
• Eigenpie corresponds to a total of 24% IDO allocation, 3M FDV undervalued.
• The basic earnings of the stored LST (for example, mETH APR is 7%, which can continue to enjoy)

The points will be provided as a gain based on the total size of the team; the larger the size, the higher the increase, up to a maximum of two times. It is recommended to participate as a group to achieve greater benefits.

B. Operating Mechanism

Eigenpie is committed to developing Isolation LRT (ILRT), issuing corresponding tokens for each LST to isolate risks.

Currently, a large protocol has launched multiple LSTs. If an LRT project broadly accepts all LSTs, it must bear the risks of all underlying LSTs. Once a security issue arises with a certain LST, it could severely impact the entire project.

Therefore, Eigenpie's ILRT solution has emerged, effectively isolating the risks.

While isolation risks also isolate liquidity, this won't cause too much of a problem. One of the advantages of LRT that supports LST, compared to LRT that supports native staking, is that it can fully utilize the liquidity of the underlying LST. Separate trading pairs are actually more beneficial for collaborating with LST project parties to incentivize liquidity.

C. Development Prospects

Although Eigenpie was launched relatively late, it fills an important market need: LSTs that have joined a large protocol are eager to participate in the LRT narrative, and Eigenpie currently seems to be the best solution. Each LST has its own independent LRT, without worrying about making a suit for others. LSTs with higher yields, like mETH, can also continue to leverage their advantages.

In the future, the project team is very likely to promote the trading of newly minted tokens on decentralized exchanges and even launch on certain liquidity protocols. These initiatives will bring substantial profits to the project and its sub-protocols.

D. Expected Returns

The token economic model is as follows:

• IDO: 40%
• Airdrop: 10%
• Incentive 35%
• Project Reserve: 15% (usually not sold, distributed as staking rewards to specific token holders)

This is basically a fair issuance operation, and the difference from other projects is that the IDO whitelist is mostly explicitly given to TVL providers.

TVL providers will receive:

• Airdrop of 10% of the total amount
• 60% of IDO allocation (IDO accounts for 40% of the total), $3M FDV valuation

34% of the total amount will be given to TVL providers, accounting for about 70% of the initial circulation, and there is no risk of selling pressure from investment institutions in the future.

Currently, the LRT track is very popular, and even projects with a TVL of only $7M can reach a market cap of $35M and a fully diluted valuation of $180M. Eigenpie's final TVL is likely to far exceed this number.

Assuming the token is issued two months later, with an average TVL of $200M, it could reach an annualized yield of 180%. This does not include the earnings from the underlying large protocol's points. Early participants in the first 15 days can also receive a 2x increase in points.

Summary

• Participating in airdrops requires teamwork to achieve greater amplification.
• The unique mechanism is ILRT, effectively isolating the risks of each LST.
• Advantages also include the ability to fully utilize the resources accumulated by the project party on other platforms to accelerate development.

Most of the rights are clearly given to the TVL providers, with a transparent and fair issuance mechanism for IDO quotas.