Radpie: "Convex" of RDNT is about to launch

Radpie, as the "Convex" of RDNT, is about to launch, and the market is responding enthusiastically. With multiple favorable factors at play, can Radpie replicate or even surpass the successful trajectory of PNP? This article will provide a detailed introduction to Radpie's operational mechanism, product advantages and disadvantages, market narrative, and participation methods.

Radpie Operating Mechanism

The relationship between Radpie and RDNT is similar to that of Convex and Curve. The full-chain lending protocol Radiant has certain restrictions on liquidity incentives, requiring users to indirectly lock a certain amount of RDNT in order to earn mining rewards. Specifically, users must hold dLP equivalent to 5% of the deposit amount (an 80% RDNT/20% ETH Balancer pool LP). If the ratio is below 5%, no RDNT emission rewards will be received.

Radiant's one-click loop function will automatically borrow to purchase dLP when the dLP ratio is insufficient, providing good continuous support for RDNT. dLP has a locking period requirement, and the longer the locking time, the higher the APR.

The core function of Radpie is to aggregate dLP and share it with DeFi miners, allowing them to participate in mining without directly holding RDNT. This is similar to the Convex model of sharing veCRV. The aggregated dLP will be converted into mDLP tokens, similar to how CRV is converted into cvxCRV through Convex.

For RDNT holders, dLP can be converted to mDLP through Radpie, allowing them to maintain their RDNT positions while earning high returns. This is also beneficial for the Radiant project, as converting to mDLP will permanently lock it, supporting the long-term liquidity of RDNT and helping to attract more lightweight users.

It is worth noting that Radiant currently does not determine incentive distribution through voting like Pendle/Curve, and therefore lacks bribery income. However, Radiant has made it clear that it will continue to promote DAO construction, and future governance rights may gain more value. As a large holder of governance rights (dlp), Radpie is also expected to benefit from this.

Product Advantages and Disadvantages Analysis

Radpie, as a product built on the foundation of a mature project, has a relatively clear development prospect. In horizontal comparison, Aura's FDV is about 35% of Balancer's, while Convex is 14% of Curve's. Considering that RDNT is a project with an FDV of 300 million USD and has been listed on Binance, Radpie's valuation is of certain reference. According to the convention of the Magpie subDAO, the FDV of Radpie's IDO is expected to be below 10 million USD, providing potential profit space for IDO participants.

The main disadvantage of Radpie lies in its lack of horizontal scalability like the parent DAO Magpie. However, it will benefit from the internal and external circulation system of Magpie's various subDAOs.

Market Narrative

The main narrative of Radpie includes LayerZero, ARB airdrop, super-sovereign leveraged governance, dual circulation both internally and externally, and subDAO model.

1. LayerZero: RDNT is a well-known LayerZero concept coin, and Radpie will use LayerZero to achieve cross-chain operations.

2. ARB Airdrop: RDNT DAO has decided to allocate 70% of the obtained ARB to new locked and existing dLP, and Radpie is expected to participate in sharing this reward of over 2 million ARB.

3. Supranational Leverage Governance: A large amount of RDP will be allocated to the Magpie treasury, which will bring benefits to MGP holders on one hand, and on the other hand, MGP holders can participate in Radiant DAO decision-making through the controlled RDP.

4. Dual Circulation: Magpie has formed a unique system through the subDAO model in the governance track expansion. The internal circulation refers to the flow of tokens within the Magpie system, reducing external expenditures; the external circulation refers to the realization of resource sharing among multiple projects, lowering costs and increasing efficiency.

5. subDAO Model: In addition to the aforementioned advantages, it can also inherit the reputation of the parent DAO, fully leverage the advantages of Tokenomics, and provide more investment options for the market.

How to Participate in the Magpie Series IDO

Referring to the allocation of IDO shares for Penpie, the participation methods for future Magpie series IDOs may include:

1. Long-term holding: Purchase and hold vlMGP, which is expected to participate in all future subDAO IDOs of Magpie. However, it is significantly affected by MGP price fluctuations.

2. Short-term arbitrage: Participate in the mDLP Rush activity by borrowing RDNT through collateral or hedging with short contracts to convert DLP into mDLP, while also obtaining RDP airdrop and IDO shares.

It should be noted that mDLP/DLP is similar to cvxCRV/CRV, as it is a soft peg rather than a mandatory peg, and it may not maintain a 1:1 ratio upon exit.

Summary

Radpie, as the "Convex" of RDNT, has the greatest advantage in undervaluation and reliance on major projects. It is supported by five narrative pillars: LayerZero, ARB airdrop, super-sovereign leverage governance, internal and external dual circulation, and subDAO. The IDO participation methods are diverse, suitable for participants with different investment strategies.