Author: Mad Sleeper in the Rain Source: Substack
Magpie has been discussed several times before, I really like this project, the team has a forward-looking view of the hot narrative in the DeFi space, and has quickly launched products. The launch of SubDAO @Listapiexyz_io by Lista DAO also confirms my view.
The following content is intended to introduce this project to everyone and take stock of Magpie’s layout in the current DeFi ecosystem.
Let’s dive into
1/ Magpie’s position in the DeFi world
In DeFi, in order to balance AMM liquidity depth and rewards to LP providers, as well as to solve the selling pressure problem of protocol tokens, ve tokenomics has emerged. Ve economics has also triggered a governance war at the protocol level, where various participants accumulate veTokens of the protocol through various means and clever designs to control the emission flow of the protocol token to achieve their own goals.
If we consider the various participants in the governance war as a series of armies, then Magpie’s SubDAO is 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). Eventually, SubDAOs gain governance weight, expanding their say in the corresponding protocol. While retail investors receive incentives in the form of SubDAO’s native tokens, they can also participate in SubDAO to earn profits (protocol token emissions).
2/ For example
The most impressive SubDAO for me is @Penpiexyz_io.
During the Pendle governance war, Penpie was the best-performing governance aggregator in terms of performance (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 of 12.49M vePENDLE, accounting for 36.19% of the total.
Reference link:
https://www.defiwars.xyz/wars/pendle
Here are some of Penpie’s developments in May
Distributed $121,000 in voting incentives;
Passed and executed PIP #10 proposal aimed at strengthening the anchoring of mPENDLE through a strategic buyback and burn mechanism;
Completed a buyback of over 66,000 mPENDLE tokens;
Integrated DeltaPrime on Arbitrum;
Will receive 285,000 ARB tokens as a reward in the incentive plan for Arbitrum’s STIP Addendum
3/ Magpie’s development history
At the end of 2022, Magpie started with the stablecoin swap protocol @WombatExchange on BNB Chain, and participated in the governance war of veWOM with @WombexFinance @QuollFinance and other protocols.
In 2023, with the rise of the new DeFi narrative and the expansion of the multi-chain landscape, the Magpie team successively developed governance projects based on @Pendle_fi @PancakeSwap @eigenlayer @RDNTCapital @CamelotDEX and other protocols, and named this innovative model subDAO. As of now, the Magpie team has accumulated a TVL of over $11.3 billion in 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 has surpassed $1 billion in TVL, 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, Radpie, mentioned earlier, is developed based on dLP, aiming to address the issue of locked dLP liquidity. Eigenpie, on the other hand, focuses on addressing the systemic risk posed by a single LRT (worth noting is that the Eigenpie TGE IDO will be conducted at a $3 million FDV, and users who have money in the protocol can participate in this IDO).
Lets talk about Magpies governance aggregation ecosystem