Penpie $PNP IDO has risen 5 times since its opening. Magpie strikes while the iron is hot and announces that it will continue to launch Radiant $RDNT's "Convex" in subDAO mode - Can Radpie replicate or even surpass PNP's gains with the support of multiple narratives?

This article will introduce you to the Radpie mechanism, product advantages and disadvantages, narrative labels, and participants of the Magpie IDO.

A. Radpie Mechanism

Simply put, Radpie is to RNDT what Convex is to Curve. Radiant, a full-chain lending protocol and Layerzero concept, has taken restrictive measures in terms of liquidity incentives. Simply put, you need to indirectly lock a certain amount of RNDT to obtain mining income. Specifically, you need a dLP equivalent to 5% of the deposit amount. The dLP is the LP of a Balancer pool of 80% RDNT/20% ETH. Once the ratio is less than 5%, you will not get the RDNT emission income.

If you use RDNT's one-click loop function, once your dLP ratio is less than 5%, the system will automatically help you borrow money to buy dLP.

This also brings better sustainability to RDNT. After all, when you mine RDNT, you are actually providing long-term liquidity for RDNT.

After all, dLP has a lock-up time requirement, and the longer the lock-up time, the higher the APR.

What Radpie does is to raise dLP and then share it with DeFi miners, so that DeFi miners can mine without holding RDNT, which is actually similar to Convex's shared veCRV. The raised dLP will also be given mDLP tokens, just like CRV is converted into cvxCRV through Convex.

For RNDT holders, they can form dLP and then convert it to mDLP through Radpie, and enjoy high returns while holding RNDT positions. The logic is similar to cvxCRV. After all, dLP contains 80% RNDT, and the price change is very close to RDNT. For the Radiant project, this is also a good thing. After all, after converting to mDLP, it will be locked in a perpetual cycle, and part of the RNDT will be directly sent into the black hole to support the long-term liquidity of RDNT. In addition, it will also help to attract more lightweight users.

For example, in the figure below, Pendle started to accelerate growth after the release of the Pendle series "Convex" product, and Radiant is expected to benefit from this

The only drawback is that Radiant does not use voting to determine incentive allocation like Pendle/Curve, so it lacks the bribe income.

However, Radiant has made it clear that it will continue to build the DAO, so governance rights are expected to gain more value in the future, and Radpie, which holds a large amount of governance rights (dlp), is naturally expected to benefit from this.

B. Product advantages and disadvantages

Similar to Penpie, Radpie is also a project standing on the shoulders of giants, and such projects have clear upper and lower limits. In horizontal comparison, Aura FDV is 35% of Balancer, and Convex is 14% of Curve. As a project with a FDV of 300 million US dollars and listed on Binance, Radpie's valuation is also comparable. According to the consistent style of Magpie subDAO, the FDV of Radpie IDO should be below 10M, so that there is a certain profit space for IDO participants.

The disadvantage is that Radpie does not have the same horizontal expansion capabilities as the parent DAO Magpie, but it will also benefit from the internal and external circulation system of Magpie's subDAOs. Please refer to the next section for details.

C. Narrative Tags

LayerZero/ ARB airdrop/super sovereign leverage governance/internal and external dual circulation/ subDAO will be Radpie's narrative label

LayerZero, RNDT is a well-known LayerZero concept coin, and Radpie will naturally use LayerZero to achieve cross-chain interoperability.

ARB airdrop, RNDT DAO has decided to airdrop 40% of the ARB obtained to newly locked dLPs in the next period of time, and 30% will be airdropped on average to existing dLPs in the next year. Radpie happened to catch up with this time point and is expected to participate in the feast of sharing 2M+ ARB, which is very helpful for the launch of the project.

Super sovereign leveraged governance, as a rule, will have a large amount of RDP allocated to the Magpie treasury. On the one hand, the profits from these tokens will be distributed to MGP holders. On the other hand, when Radiant DAO makes decisions, MGP holders can also participate through the RDP they control.

Considering that MGP participates in RDP and RDP participates in RDNT as a whole, this actually brings a kind of leverage. If MGP votes for a certain item, since it accounts for the majority of RDP shares, it will basically pass as long as others do not collectively oppose it. In the RDNT vote, 100% of the dLPs controlled by Radpie will also vote for this option. This is the essence of super-sovereign leverage governance.

Internal and external dual circulation, this is a unique system created by Magpie's expansion using the subDAO model under the governance rights track.

For example, the mdLP/dLP trading pair will most likely be deployed on wombat, bribing vlMGP holders to get more wom incentives. If mDLP is listed on Pendle in the future, then Radpie will bribe Penpie.

These emitted tokens remain in the Magpie system, which is the so-called internal circulation. The meat rots in the pot, reducing net external expenditure.

The external loop refers to reducing costs and increasing efficiency by sharing resources between multiple projects. For example, Ankr obtains Pendle incentives through Penpie Bribe, so if Radiant opens Bribe in the future, it will be easier to negotiate.

SubDAO, it is not difficult to see that the super-sovereign leverage governance and the internal and external dual circulation system are all based on the expansion of Magpie through the subDAO model. In addition to the above two points, subDAO actually has other benefits. First, in the current situation where Rug is everywhere, the most important thing for a project is reputation. The subDAO model can inherit the reputation of the parent DAO; second, compared with direct integration, providing independent tokens can give full play to the advantages of Tokenomics to achieve growth; third, it provides more gambling tools to the market to ensure that the parent project can keep up with the majority of narratives.

D. Magpie is a way to participate in IDO

In Penpie, IDO shares are allocated like this

35% - xGRAIL holders

30% - mPENDLE holders

25% - vlMGP holders

10% - Penpie LP Provider

By analogy, the ways to participate in Magpie IDO in the future can be divided into:

The long-term way to participate is to buy and hold vlMGP, which is expected to allow you to participate in all future subDAO IDOs of Magpie. However, this model is greatly affected by the price fluctuations of MGP, so please fully dyor

The short-term arbitrage participation method is to borrow RDNT through Binance collateral or short contract hedging, participate in the mDLP Rush event to convert DLP into mDLP, get RDP airdrops on one side and IDO shares on the other. If you want to hold the base layer token (RDNT), you can also buy it directly to participate in mDLP Rush.

It should be noted that mDLP/DLP, like cvxCRV/CRV, is a soft hook rather than a hard hook, and may not maintain 1:1 when you exit, dyor dyor!

In addition, the Launchpad platform can naturally also share some benefits, but to be honest, it makes little sense for such undervalued projects to raise funds through the Launchpad platform.

PNP probably considered attracting traffic and contacting the ARB community through Camelot to help Magpie make a name for itself in Arbitrum, but it seems that Radpie no longer needs this?

Pancake/Camelot is a viable candidate (Camelot is not that qualified), but if there are no suitable terms, there is no reason to share a piece of the pie, so the uncertainty is still relatively high. In addition, Cake Grail is a relatively large market, and the arbitrage income may be relatively small, so the uncertainty factor is quite large.

Summarize

Radpie is the Convex of RDNT. Its biggest advantage is its low valuation + the fact that it is backed by a big tree. Rapie has five narrative labels: LayerZero/ ARB airdrop/ super-sovereign leverage governance/ internal and external dual circulation/ subDAO. There are various ways to participate in IDO, and there are suitable methods for both long-term and short-term.