Author: Rainy Sleeper Source: Substack
I have talked about Magpie many times before, and I really like this project. The team has a forward-looking perspective on the popular narratives in DeFi and quickly launches products. The launch of SubDAO @Listapiexyz_io for Lista DAO further confirms my point of view.
The following content aims to briefly introduce this project to everyone and take stock of Magpie’s layout in the current DeFi ecosystem.
Let’s dive in together.
1/ Positioning of Magpie in the DeFi world
In DeFi, in order to balance AMM liquidity depth and reward LP providers, as well as solve the selling pressure problem of protocol tokens, ve tokenomics have emerged. Ve tokenomics has also triggered a governance war at the protocol level, where various participants accumulate veTokens through various means and clever designs to ultimately control the emission flow of protocol tokens to achieve their own goals.
If we consider the various participants in the governance war as different armies, then Magpie’s SubDAO is like a mercenary army composed of retail investors – SubDAOs often attract retail investors to delegate tokens to them through their native token incentives (various Rush activities). In the end, SubDAOs gain governance weight, expanding their voice in the corresponding protocol. Retail investors, while receiving incentives from SubDAO’s native tokens, can also participate in SubDAO to earn profits (corresponding protocol token emissions).
2/ An example
The most impressive SubDAO to me is @Penpiexyz_io.
During the Pendle governance war period, Penpie was the best-performing governance aggregator in terms of price performance and mPENDLE/PENDLE exchange rate performance. Unfortunately, I made a wrong choice at the time and stored all my $PENDLE in another aggregator.
As of now, Penpie (mPENDLE) has control over 12.49 million vePENDLE, accounting for 36.19% of the total.
Reference link:
https://www.defiwars.xyz/wars/pendle
Here are some developments for Penpie in May:
– Distributed $121,000 in voting incentives
– Passed and executed PIP #10 proposal aimed at strengthening mPENDLE anchoring through strategic buyback and burn mechanisms
– Completed the repurchase of over 66,000 mPENDLE tokens
– Integrated DeltaPrime on Arbitrum
– Will receive 285,000 ARB tokens as rewards in Arbitrum’s STIP Addendum incentive program
3/ Development history of Magpie
By the end of 2022, Magpie started with the stablecoin swap protocol @WombatExchange on BNB Chain and participated in the veWOM governance war with protocols like @WombexFinance @QuollFinance.
In 2023, with the rise of new DeFi narratives and the expansion of multi-chain layouts, the Magpie team developed governance projects based on protocols such as @Pendle_fi @PancakeSwap @eigenlayer @RDNTCapital @CamelotDEX, and named this innovative model subDAO. As of now, the Magpie team has accumulated over $1.13 billion in TVL across multiple protocols.
4/ Magpie’s governance universe – Mega DAO
Currently, Magpie’s subDAO projects include:
– @Pendle_fi – @Penpiexyz_io
– @PancakeSwap – @Cakepiexyz_io
– @eigenlayer – @Eigenpiexyz_io
– @RDNTCapital – @Radpiexyz_io
– @CamelotDEX – @Campiexyz_io
– @lista_dao – @Listapiexyz_io
Among them, @Eigenpiexyz_io’s TVL has surpassed $1 billion, while @Cakepiexyz_io controls over 42% of veCAKE in PancakeSwap.
Of course, the ambitions of the Magpie team go beyond ve tokenomics. In addition to veDAO, the above-mentioned Radpie is developed based on dLP to solve the liquidity locking problem. Eigenpie focuses on addressing the systemic risks posed by individual LRTs (it is worth noting that Eigenpie’s TGE IDO will be conducted with a $3 million FDV, and users who have stored money in the protocol can participate in this IDO).
