Let’s talk about Magpie’s governance aggregation ecosystem

Author: Sleeping in the Rain Source: Substack

I have talked about Magpie many times before. I like this project very much. The team has a forward-looking view of the popular narrative of DeFi and quickly launched products. The SubDAO @Listapiexyz_io launched for Lista DAO also confirms my point of view.

The following content aims to briefly introduce this project to you and take stock of Magpie's layout in the current DeFi ecosystem.

Let's dive in

1/ Magpie's position in the DeFi world

In DeFi, ve token economics came into being to balance the depth of AMM liquidity and rewards to LP providers, as well as to solve the problem of selling pressure on protocol tokens. And ve economics also triggered a governance war at the protocol level, that is, each participant accumulated the protocol's veToken through various means and clever designs, and ultimately controlled the emission flow of the protocol tokens to achieve their own goals.

If we regard the various participants in the governance war as an army, then Magpie's SubDAO is a mercenary army composed of retail investors - SubDAOs often use their own native token incentives (various Rush activities) to attract retail investors to entrust tokens to them. In the end, SubDAO gains governance weight and expands its voice in the corresponding protocol. While retail investors are receiving incentives from SubDAO native tokens, they can also participate in SubDAO to gain benefits (corresponding to the token emission of the protocol).

2/ For example

The SubDAO that impressed me the most is @Penpiexyz_io .

During the Pendle governance war, Penpie was the best governance aggregator in terms of performance (price performance and mPENDLE/PENDLE exchange rate performance). Unfortunately, I made a wrong choice at the time and stored all $PENDLE in another aggregator.

As of now, Penpie (mPENDLE) has controlled 12.49M vePENDLE, accounting for 36.19% of the total.

Reference link: https://www.defiwars.xyz/wars/pendle

Here are some of Penpie's progress in May

• Distributed $121,000 in voting incentives;

• Passed and executed the PIP #10 proposal, which aims to strengthen the anchor of mPENDLE through a strategic buyback and destruction mechanism;

• Completed the buyback of more than 66,000 mPENDLE tokens;

• Integrated DeltaPrime on Arbitrum;

• Will receive a reward of 285,000 ARB tokens in Arbitrum’s STIP Addendum incentive plan

3/ Magpie’s development history

At the end of 2022, Magpie took the stablecoin swap protocol @WombatExchange on BNB Chain as a starting point and participated in the governance war of veWOM together with protocols such as @WombexFinance @QuollFinance.

In 2023, with the rise of the new narrative of DeFi and the development of the multi-chain pattern, the Magpie team has successively developed corresponding governance projects based on the governance layers of protocols such as @Pendle_fi @PancakeSwap @eigenlayer @RDNTCapital @CamelotDEX, and named this original model subDAO. To date, the Magpie team has accumulated over $1.13 billion in TVL across multiple protocols.

4/ Magpie's governance universe - Mega DAO

Currently, Magpie's subDAO projects are:

@Pendle_fi - @Penpiexyz_io

@PancakeSwap - @Cakepiexyz_io

@eigenlayer - @Eigenpiexyz_io

@RDNTCapital - @Radpiexyz_io

@CamelotDEX - @Campiexyz_io

@lista_dao - @Listapiexyz_io

Among them, @Eigenpiexyz_io’s TVL has exceeded 1 billion US dollars, and @Cakepiexyz_io controls more than 42% of veCAKE in PancakeSwap.

Of course, the Magpie team’s ambitions are not limited to ve token economics. In addition to veDAO, the Radpie mentioned above is developed based on dLP, with the goal of solving the problem of dLP liquidity being locked. Eigenpie focuses on solving the systemic risks brought by a single LRT (it is worth noting that the Eigenpie TGE IDO will be carried out with 3 million US dollars of FDV, and users who have deposited money in the protocol can participate in this IDO).