What is Magpie

Source:https://x.com/magpiexyz_io

Magpie is a DeFi protocol based on BNB Chain, aiming to enhance the participation and profit potential of the veTokenomics protocol by optimizing the returns for governance token holders and liquidity providers. The veTokenomics model, proposed by the Curve protocol, requires users to lock governance tokens as veTokens (voting proxy tokens) to increase their voting power and share of governance token issuance in the protocol. This mechanism reduces the inflation of governance tokens and rewards long-term holders, thus promoting long-term stability in protocol governance.

However, veTokenomics faces some challenges in practice, including:

1. Limited user base: the need to purchase and lock governance tokens has resulted in many risk-averse liquidity providers being unwilling to participate.
2. veToken holders have limited income: veToken holders often can only receive little or no passive income.
3. High voting cost: Users must purchase and lock governance tokens to obtain voting rights.

Magpie effectively solves the above problems through its innovative solutions. Magpie encourages governance token holders and liquidity providers to pool their assets together, helping the platform acquire governance tokens and convert them into veTokens, thereby increasing the profits of liquidity providers. At the same time, the platform shares a portion of the increased profits from liquidity providers with governance token holders.

Innovation points of Magpie

Magpie’s innovation is not only reflected in its token model and ecological design, but also in its technical implementation and security measures. The platform employs various tools and frameworks such as Docker and Apache Maven in its technical architecture to ensure stability and security of the platform.

1. Multi-chain support and cross-chain exchange: Magpie supports asset exchange between different blockchains, enabling users to conveniently engage in cross-chain transactions, avoiding the risks and dependencies of traditional bridging or centralized exchanges.
2. Decentralized Governance and Liquidity Boost: Magpie drives decentralized governance on the platform through its governance token MGP. Users can lock MGP as Vote-Locked MGP (vlMGP) to earn rewards and participate in platform governance. This mechanism enhances liquidity and provides users with higher passive income.

Magpie ecosystem

The Magpie ecosystem promotes the long-term development and innovation of the blockchain ecosystem through integration with multiple DeFi protocols, with the core goal of increasing user profits and optimizing the experience of DeFi participants. The veTokenomics mechanism of Magpie supports veTOKEN-based protocols to recover governance tokens from DeFi platforms, promote project development, and bring rewards to each sub-DAO and the entire Mega DAO. At the same time, Magpie provides Liquid Restaking services to enhance the sustainability of the blockchain network, create more participation opportunities for users, and increase rewards. In terms of Liquid Staking, Magpie has developed Babypie, a SubDAO that provides liquidity staking services for Bitcoin, creating new value and rewards for Bitcoin holders.

Magpie integrated protocol

1. Penpie (Pendle Finance): Pendle Finance is a DeFi yield trading protocol with a TVL of over $4.5 billion. The integration of Magpie and Pendle optimizes yield opportunities and enhances Pendle’s veTokenomics model.
2. Radpie (Radiant Capital): Radiant Capital is a DeFi lending protocol with a TVL of over $80 million. Magpie, through its collaboration with Radiant, has launched Radpie, further optimizing the reward opportunities of Radiant and enhancing its core functionality through the SubDAO model.
3. Cakepie (PancakeSwap) PancakeSwap is a decentralized exchange with a TVL of over $2 billion. The integration of Magpie and PancakeSwap has introduced Cakepie, aimed at improving PancakeSwap’s newly launched veCAKE model.
4. Eigenpie (EigenLayer): EigenLayer is an infrastructure on Ethereum that enhances the security of the cryptoverse through ‘re-staking.’ The collaboration between Magpie and EigenLayer enables users to utilize their technology to secure and earn additional rewards for multiple applications, using ETH or ETH LSTs multiple times.
5. Campie (Camelot DEX): Camelot is a native DEX on Arbitrum with a TVL of $100 million. Magpie has partnered with Camelot to launch Campie, which aims to optimize Camelot’s xGRAIL structure and promote its functionality development.
6. Listapie (Lista DAO): Lista DAO is an open-source liquidity protocol that allows users to earn yields by staking encrypted assets and borrowing the decentralized stablecoin lisUSD. Magpie has integrated Lista DAO to launch Listapie, aiming to enhance the functionality of the veLISTA model.
7. Sympie (Symbiotic): As a DeFi infrastructure, Symbiotic is dedicated to improving the security and efficiency of the crypto world. The concept of ‘re-staking’ allows users to utilize their assets multiple times, providing security guarantees and earning additional rewards for more applications. The integration of Magpie and Symbiotic enables users to fully leverage this technology and enhance the profitability of their assets.
8. Babypie (Babylon): Babylon is a Bitcoin-based staking protocol designed to enhance its security by providing staking services for Bitcoin. Magpie offers Bitcoin holders new opportunities for value generation through Babypie, allowing BTC participants to earn rewards in a new PoS system while enhancing the security of other applications.

MGP Token Economics

Source:https://docs.magpiexyz.io/mgp-token

Magpie’s governance token MGP is not only the core of the platform, but also the key to participating in governance and earning rewards. The MGP token can be locked as Vote-Locked MGP (vlMGP), allowing token holders to not only earn profits, but also share governance power of the platform. The locked vlMGP can provide rewards from different sub-DAOs for users and participate in the voting process of the Magpie platform.

The total supply of MGP tokens is 1 billion, and the distribution mechanism includes strategic sales, PancakeSwap IFO, liquidity mining, and other channels. The specific allocation is as follows:

Source:https://docs.magpiexyz.io/mgp-token/mgp-distribution

The lock-in and unlock mechanism of MGP adopts a flexible cooling-off period mechanism. After users lock MGP as vlMGP, they can unlock the lock by ‘forced unlocking’ or waiting for the cooling-off period to end. The former will be penalized, while the latter will not incur any penalty.

During the unlocking process, users can unlock tokens in advance by paying a fine. The fine will be dynamically adjusted based on the duration of token lock-up and the market situation at the time of unlocking. This mechanism encourages users to hold and participate in governance for the long term, while providing flexible exit options.

MGP’s market performance

Since its launch, MGP has attracted a large number of liquidity providers and governance token holders to participate, thanks to its innovative DeFi model and strong technical support. Its market value once exceeded $180 million, and as of the time of writing (January 9, 2025), it has fallen to $119 million. Magpie’s cooperation agreements and strategic partnerships, such as the cooperation with Wombat Exchange, provide strong support for its further ecosystem expansion.

The market performance of MGP can be measured by indicators such as its daily active users and the growth of liquidity pools. As Magpie gradually expands its services and introduces more veTokenomics protocols, it is expected that the market performance of MGP will continue to grow.

Source:https://www.gate.io/pilot/bnb-smart-chain/magpie-token-mgp

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Conclusion

Magpie (MGP) is not only an innovative DeFi platform, but also a key tool to promote decentralized governance and liquidity enhancement. Through its unique veTokenomics mechanism, sub-DAO model, and liquidity staking service, Magpie provides DeFi protocols and users with more profit opportunities and governance participation channels. With the continuous expansion of the ecosystem and technological innovation, Magpie is expected to become an important participant in the DeFi field in the future.

Whether you are a liquidity provider, governance token holder, or DeFi enthusiast, Magpie provides a new and promising platform to help you gain more opportunities and profits in the decentralized financial world.