Radpie: RDNT's "Convex" is coming soon

Recently, Penpie's $PNPIDO saw its price increase by as much as 5 times after its launch. Riding this wave, Magpie announced the launch of the "Convex" product - Radpie, based on a subDAO model for Radiant($RDNT). With multiple favorable factors at play, can Radpie replicate or even surpass the performance of PNP? This article will delve into the operational mechanism of Radpie, its 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. Radiant, as an all-chain lending protocol and Layerzero conceptual project, has implemented certain restrictions in terms of liquidity incentives. Users need to indirectly lock a certain proportion of RDNT to obtain mining rewards. Specifically, users must hold dLP equivalent to 5% of the deposit amount (an 80% RDNT / 20% ETH Balancer pool LP). If the proportion is below 5%, they 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 below 5%. This mechanism provides good sustainability for RDNT, as users are providing long-term liquidity for RDNT while mining. dLP has a lock-up period requirement, and the longer the lock-up time, the higher the APR.

The core 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, allowing them to enjoy high returns while holding RDNT positions. This is also beneficial for the Radiant project, as converting to mDLP achieves a perpetual cycle lock, supporting the long-term liquidity of RDNT and helping to attract more lightweight users.

However, unlike Pendle/Curve, Radiant currently lacks a mechanism for incentive distribution determined by voting, thus missing out on the bribery income component. Nevertheless, Radiant has made it clear that it will continue to advance DAO construction, and governance rights are expected to gain more value in the future. Radpie, as a large holder of governance rights (dlp), may also benefit from this.

Product Advantage and Disadvantage Analysis

Radpie is similar to Penpie, both are derivative products based on mature projects, so their development upper and lower limits are relatively clear. 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 a well-known trading platform, Radpie's valuation has certain reference value. According to the convention of Magpie subDAO, Radpie's IDO FDV is expected to be below 10 million USD, which provides potential profit space for IDO participants.

The main disadvantage of Radpie lies in its lack of horizontal scalability of the parent DAO Magpie. However, it will benefit from the internal and external circulation system of the various subDAOs under Magpie, which will be discussed in detail below.

Market Narrative Tag

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

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

2. ARB Airdrop: The RDNT DAO has decided to allocate 40% of the received ARB airdrop to the recently locked dLP, and 30% to be evenly distributed among the dLPs that will remain for the next year. Radpie is right on time for this opportunity and is expected to participate in sharing the reward of over 2 million ARB, which will greatly benefit the project launch.

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

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 emissions of tokens remaining within the Magpie system, reducing net external expenditure. The outer circulation, on the other hand, aims to reduce costs and increase efficiency 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 Tokenomics advantages, and offer more investment options for the market, ensuring that the parent project can keep up with the majority of narratives.

How to Participate in Magpie IDO

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

1. Long-term participation: Buy and hold vlMGP, expected to participate in all future subDAO IDOs of Magpie. However, this method is greatly affected by MGP price fluctuations and requires careful consideration.

2. Short-term arbitrage: By borrowing RDNT or hedging with short contracts, participate in the mDLP Rush event to convert DLP into mDLP, while also gaining RDP airdrops and IDO shares. If there is a willingness to hold RDNT, you can also directly purchase to participate in the mDLP Rush.

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

As for participating in the Launchpad platform, considering that it makes little sense for undervalued projects to raise funds through such platforms, Radpie may not adopt this approach. Some trading platforms may be potential candidates, but if there are no suitable conditions, there is no need to allocate a portion of shares.

Summary

Radpie, as the "Convex" of RDNT, has the greatest advantage of low valuation and backing by a big tree. It features five narrative tags: LayerZero, ARB airdrop, super-sovereign leveraged governance, internal and external dual circulation, and subDAO. The IDO participation methods are diversified, suitable for participants with different investment strategies.