Radpie: Can RDNT's "Convex" replicate PNP's success?

Recently, Magpie announced the launch of the "Convex" product Radpie for Radiant(RDNT) in subDAO mode. With the support of multiple narratives, can Radpie replicate or even exceed the returns of PNP? This article will delve into the mechanisms, advantages and disadvantages, narrative labels, and participation methods of Radpie.

Radpie Mechanism

The relationship between Radpie and RDNT is similar to that of Convex and Curve. Radiant has implemented restrictions in liquidity incentives, requiring users to indirectly lock a certain proportion of RDNT to obtain mining rewards. Specifically, users need to hold dLP equal to 5% of their deposit amount, where dLP is the LP token of a Balancer pool consisting of 80% RDNT and 20% ETH.

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 mechanism by which Convex shares 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 into mDLP through Radpie, allowing them to enjoy high yields while holding RDNT positions. For the Radiant project, this helps lock up some RDNT, supports long-term liquidity, and attracts more lightweight users.

However, unlike Pendle/Curve, Radiant currently does not decide incentive distribution through voting, so there is a lack of bribery income. However, Radiant has stated that it will continue to promote DAO construction, and governance rights may gain more value in the future.

Advantages and Disadvantages of the Product

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, and Convex is about 14% of Curve. Considering that RDNT is a project with an FDV of 300 million USD and has been listed on Binance, Radpie's valuation is somewhat comparable.

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 Magpie's subDAOs.

Narrative Tag

The main narrative tags of Radpie include:

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

2. ARB Airdrop: The RDNT DAO has decided to airdrop a portion of the obtained ARB to new locked and ongoing dLP, and Radpie is expected to participate in sharing this airdrop.

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

4. Dual Circulation: Magpie achieves a unique system through expansion via the subDAO model, enabling resource sharing and cost reduction while increasing efficiency.

5. subDAO: Inherit the reputation of the parent DAO, fully leverage the advantages of Tokenomics, and provide more investment options for the market.

How to Participate

There are mainly two ways to participate in the Magpie IDO:

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

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 airdrops and IDO shares.

It should be noted that mDLP/DLP, like cvxCRV/CRV, is a soft peg rather than a hard peg, and the 1:1 ratio may not be maintained upon exit.

Summary

Radpie, as "Convex" of RDNT, has the greatest advantage of low valuation and backing by a strong foundation. It features five narrative tags: LayerZero, ARB airdrop, super-sovereign leverage governance, internal and external dual circulation, and subDAO. Participation methods are diversified, suitable for both long-term and short-term investors. However, investors should still assess risks carefully and make decisions after fully understanding the project.