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

Recently, Penpie's $PNPIDO opened strong, rising up to 5 times. Following this, Magpie announced the launch of the "Convex" product - Radpie, based on the subDAO model, for Radiant($RDNT). With multiple favorable factors supporting it, can Radpie replicate or even surpass the success of PNP? Let's delve into Radpie's mechanisms, advantages and disadvantages, narrative tags, and participation methods.

Radpie Mechanism Analysis

The relationship between Radpie and RDNT is similar to that of Convex and Curve. As a cross-chain lending protocol, Radiant has implemented some restrictions on liquidity incentives. Users need to indirectly lock a certain proportion of RDNT to earn mining rewards. Specifically, users need to hold dLP equivalent to 5% of their deposit amount. dLP is an LP token from a Balancer pool consisting of 80% RDNT and 20% ETH. If the dLP proportion is below 5%, users will not be able to receive RDNT emission rewards.

The one-click loop function of Radiant will automatically borrow to purchase dLP when the dLP ratio is insufficient. This mechanism provides better sustainability for RDNT because, while mining, users are also providing long-term liquidity for RDNT. dLP has a lock-up time requirement; the longer the lock-up period, the higher the APR.

The core function of Radpie is to raise dLP and share it with DeFi miners, allowing them to participate in mining without directly holding RDNT. This is similar to Convex's model of 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, allowing them to enjoy high returns while maintaining their RDNT position. This is also beneficial for the Radiant project, as the tokens converted to mDLP will be permanently locked, supporting the long-term liquidity of RDNT and helping to attract more lightweight users.

It is worth noting that Radiant is currently not governed by voting to determine incentive distribution like Pendle/Curve, thus lacking bribery income. However, Radiant has clearly stated that it will continue to promote the construction of the DAO, and governance rights may gain more value in the future. Radpie, as a large holder of governance rights (dlp), is also expected to benefit from this.

Analysis of Product Advantages and Disadvantages

Radpie, as a new product based on a mature project, has relatively clear upper and lower limits. In horizontal comparison, Aura's FDV is about 35% of Balancer, while Convex is 14% of Curve. Considering that RDNT is a project with an FDV of 300 million USD and has already been listed on Binance, Radpie's valuation also has certain comparability. According to the convention of the Magpie subDAO, Radpie's IDO FDV is expected to be below 10 million USD, which provides some profit space for IDO participants.

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

Narrative Tag

The main narrative tags of Radpie include: LayerZero, ARB airdrop, super-sovereign leveraged governance, internal and external dual circulation, and subDAO model.

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

2. ARB Airdrop: The RDNT DAO has decided to airdrop 40% of the acquired ARB to new locked dLPs and 30% to be evenly airdropped to dLPs that will be in existence over the next year. Radpie is expected to participate in sharing this airdrop of over 2 million ARB.

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

4. Dual Circulation: This is a unique system generated by Magpie's expansion using the subDAO model in the governance track. The inner circulation refers to the token issuance remaining within the Magpie system, reducing net external expenditure; the outer circulation refers to the resource sharing among multiple projects, lowering costs and increasing efficiency.

5. subDAO: This model can inherit the reputation of the parent DAO, fully leverage the advantages of Tokenomics to achieve growth, and provide more investment options for the market.

How to Participate in the Magpie IDO

Based on the IDO allocation of Penpie, the participation methods for future Magpie series IDOs may include:

1. Long-term participation: Purchase and hold vlMGP, with the hope of participating in all future subDAO IDOs of Magpie. However, it is greatly affected by MGP price fluctuations.

2. Short-term arbitrage: Participate in the mDLP Rush event by borrowing RDNT through collateral or hedging with short contracts to convert DLP into mDLP, while also receiving RDP airdrops and IDO shares. You can also directly buy RDNT to participate in mDLP Rush.

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

Summary

Radpie, as the "Convex" product of RDNT, has the main advantages of low valuation and being backed by a strong foundation. It features five narrative tags: LayerZero, ARB airdrop, super-sovereign leverage governance, dual circulation both internally and externally, and subDAO. The IDO participation methods are diverse, making it suitable for investors with different risk preferences.