Radpie: RDNT's "Convex" is about to launch

Recently, the Penpie token saw a peak increase of 5 times after its launch. Taking advantage of this momentum, Magpie announced that it will continue to adopt the subDAO model to launch Radiant's "Convex" product - Radpie. With multiple favorable factors supporting it, can Radpie replicate or even exceed the performance of PNP? This article will detail the mechanisms of Radpie, the advantages and disadvantages of the product, narrative tags, and how to participate.

A. Radpie Mechanism

The role of Radpie for RDNT is similar to that of Convex for Curve. Radiant, as a full-chain lending protocol, has implemented some restrictive measures regarding liquidity incentives. Users need to indirectly lock a certain proportion of RDNT to obtain mining rewards. Specifically, users need to hold dLP equivalent to 5% of the deposit amount. dLP is the LP token of a Balancer pool composed of 80% RDNT and 20% ETH. If the dLP proportion is below 5%, users will be unable to receive RDNT emission rewards.

If users utilize the one-click loop function of RDNT, the system will automatically borrow to purchase dLP when the dLP proportion is below 5%. This mechanism provides better sustainability for RDNT because, while mining, users are also providing long-term liquidity for RDNT. dLP has a lock-up period requirement, and the longer the lock-up time, the higher the APR.

The main function of Radpie is to raise dLP and share it with DeFi miners, allowing miners to participate in mining without holding RDNT. This is similar to the model of Convex sharing veCRV. The raised 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, enjoying high returns while maintaining RDNT positions. This is similar to the logic of cvxCRV, as dLP contains 80% RDNT, and its price changes are very close to those of RDNT.

This is also a positive for the Radiant project. The tokens converted to mDLP will be permanently locked, supporting the long-term liquidity of RDNT, while helping to attract more small users. For example, Pendle began to accelerate its growth after launching a similar "Convex" product, and Radiant is expected to benefit from this as well.

However, unlike Pendle/Curve, Radiant does not determine incentive distribution through voting, thus lacking the bribery income component. However, Radiant has clearly stated that it will continue to advance DAO construction, and future governance rights may gain more value, while Radpie, holding a large amount of governance rights (dlp), is naturally expected to benefit from this.

B. Advantages and Disadvantages of the Product

Radpie is similar to Penpie, both being products built on mature project foundations, thus their upper and lower limits are relatively clear. In horizontal comparison, Aura's FDV is about 35% of Balancer's, and Convex is about 14% of Curve's. With an FDV of 300 million USD and already listed on Binance, RDNT has a certain comparability in valuation for Radpie. Following the consistent style of Magpie subDAO, the FDV for Radpie's IDO may be below 10 million USD, providing some profit space for IDO participants.

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

C. Narrative Tags

Radpie's narrative tags include LayerZero, ARB airdrop, super-sovereign leverage governance, internal and external dual circulation, and subDAO.

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

2. ARB Airdrop: RDNT DAO has decided to airdrop 40% of the acquired ARB to new locked dLP in the near future, and 30% will be evenly airdropped to the dLP that will continue for the next year. Radpie coincidentally hits this timing and is expected to participate in sharing the bonus of over 2 million ARB, which is very helpful for the project launch.

3. Supranational Leverage Governance: By convention, a large amount of RDP will be allocated to the Magpie treasury. The revenue generated by these tokens will be distributed to MGP holders, and at the same time, MGP holders can also participate in Radiant DAO decision-making through the RDP they control. Considering that MGP participates as a whole in both RDP and RDP in RDNT, this effectively brings a leverage effect.

4. Dual Circulation: This is a unique system generated by Magpie's use of the subDAO model in the governance track. For example, the mdLP/dLP trading pairs may be deployed on a certain DEX, obtaining more incentive emissions by bribing vlMGP holders. These emitted tokens still remain within the Magpie system, reducing net external expenditure. The external circulation refers to cost reduction and efficiency increase achieved through resource sharing among multiple projects.

5. subDAO: The subDAO model can inherit the reputation of the parent DAO, provide independent tokens to fully leverage the advantages of Tokenomics for growth, while offering more investment options to the market, ensuring that the parent project can keep up with the majority of narratives.

Participation Methods for D. Magpie IDO

Referring to the IDO share distribution of Penpie, the participation methods for the Magpie system IDO in the future can be divided into:

1. Long-term participation: Purchase and hold vlMGP, which is expected to allow participation in all future subDAO IDOs of Magpie. However, this method is greatly affected by MGP price fluctuations, so please do thorough research.

2. Short-term arbitrage: Participate in the mDLP Rush event by borrowing RDNT or shorting contracts for hedging, converting DLP to mDLP while also obtaining RDP airdrops and IDO shares. If there is a demand to hold the underlying token (RDNT), you can also buy directly to participate in the mDLP Rush.

Please note that mDLP/DLP, like cvxCRV/CRV, is a soft peg rather than a hard peg, and it may not maintain a 1:1 ratio upon exit. Please assess the risks on your own.

Additionally, the Launchpad platform may also receive a portion of the benefits, but for low-valued projects, fundraising through the Launchpad platform is not very meaningful. Pancake and Camelot are possible candidate platforms, but if there are no suitable conditions, there is no need to allocate a portion of the shares. This part carries a significant degree of uncertainty.

Summary

Radpie serves as the "Convex" of RDNT, with its main advantages being low valuation and backing by a strong entity. Radpie features five narrative tags: LayerZero, ARB airdrop, super-sovereign leverage governance, internal and external dual circulation, and subDAO. The IDO participation methods are diversified, providing suitable strategies for both long-term and short-term investors.