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

Radpie is about to launch its "Convex" product as RDNT, and this news has attracted widespread attention in the market. This article will delve into the operational mechanism of Radpie, the advantages and disadvantages of the product, narrative labels, and ways to participate.

Radpie Operating Mechanism

Radpie's core function is to provide services similar to Convex for Curve for RNDT. The cross-chain lending protocol Radiant has implemented certain restrictions on liquidity incentives, requiring users to indirectly lock a certain percentage of RNDT 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%, users will not be able to receive RDNT emission rewards.

Radiant's one-click loop feature will automatically borrow to purchase dLP when the dLP ratio is insufficient, which provides better sustainability 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 aggregate dLP and share it with DeFi miners, allowing miners to participate in mining without holding RDNT. This is similar to the Convex model of sharing veCRV. The collected 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 positions. This is also beneficial for the Radiant project, as the conversion to mDLP will be permanently locked, supporting the long-term liquidity of RDNT and helping to attract more lightweight users.

However, unlike Pendle/Curve, Radiant currently lacks a mechanism for determining incentive allocation through voting, thus missing out on this portion of 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, which holds a large amount of governance rights (dlp), is also expected to benefit from this.

Analysis of Product Advantages and Disadvantages

Radpie, as a product built on the foundation of a mature project, has a relatively clear development prospect. In a 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 certain trading platform, Radpie's valuation has certain reference value. According to the convention of the Magpie sub-DAO, the FDV of Radpie's IDO is expected to be below 10 million USD, which provides potential profit space for IDO participants.

The main disadvantage of Radpie lies in the lack of horizontal expansion capabilities of its parent DAO, Magpie. However, it will benefit from the internal and external circulation system of Magpie's various sub-DAOs.

Narrative Tag

Radpie's main narrative tags include: cross-chain technology / a certain well-known L2 airdrop / super-sovereign leverage governance / internal and external dual circulation / sub-DAO model.

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

2. A well-known L2 airdrop: RNDT DAO has decided to airdrop 40% of the acquired L2 tokens to newly locked dLP in the coming period, and 30% will be evenly airdropped to dLP that will be active for the next year. Radpie happens to seize this opportunity and is expected to participate in sharing this airdrop reward.

3. Supersovereign Leverage Governance: A large amount of RDP will be allocated to the Magpie treasury. On one hand, the profits generated by these tokens will be distributed to MGP holders; on the other hand, during Radiant DAO decision-making, MGP holders can participate through the RDP they control.

4. Dual Circulation: This is a unique system generated by Magpie's use of the sub-DAO model in the governance track. The inner circulation refers to the tokens emitted remaining within the Magpie system, reducing net external expenditure; the outer circulation refers to cost reduction and efficiency enhancement through resource sharing among multiple projects.

5. Sub-DAO Model: This model can inherit the reputation of the parent DAO, fully leverage the advantages of token economics, and provide more investment options for the market.

How to Participate

The participation methods for Radpie IDO may include:

1. Long-term holding: Purchase and hold vlMGP, expected to participate in all future sub-DAO IDOs of Magpie.

2. Short-term arbitrage: By using a certain trading platform to collateralize and borrow RDNT or hedge with short contracts, participate in the mDLP Rush activity to convert DLP into mDLP, while also obtaining RDP airdrops and IDO shares.

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

Overall, Radpie, as the "Convex" product of RDNT, has main advantages in low valuation and strong background support. It features cross-chain technology, a well-known L2 airdrop, ultra-sovereign leverage governance, internal and external dual circulation, and a five-layer narrative label with sub-DAO. The IDO participation methods are diverse, suitable for users with different investment strategies.