What is Eigenpie (EGP)?

What is Eigenpie?

Eigenpie is the first-ever isolated liquid restaking platform for Ethereum Liquid Staked Tokens (LSTs), leveraging EigenLayer's infrastructure to enhance the earning potential of LST holders.

As a SubDAO within the Magpie ecosystem, Eigenpie enables liquid restaking by allowing users to deposit their LSTs and receive liquid restaking tokens (LRTs) that retain liquidity and generate ongoing rewards. This is possible through Ethereum's Proof of Stake (PoS) mechanism and EigenLayer’s restaking framework, which allows LST holders to reuse their staked assets to secure additional services, including Actively Validated Services (AVSs), and earn more rewards.

Magpie created Eigenpie to address the fragmentation of Ethereum-based protocols by integrating with EigenLayer, quickly attracting a strong user base, and forming key partnerships. Currently, users can deposit 12 different LSTs on Eigenpie, receiving isolated liquid restaked versions like mstETH and mrETH in return.

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How Does Eigenpie Work?

Eigenpie introduces a unique approach to liquid restaking by isolating risks associated with specific liquid staked tokens and offering users tailored restaking options based on their individual assets.

There are six main components of Eigenpie:

• Support for LSTs: Currently supports 12 LSTs accepted by EigenLayer, including stETH, rETH, and cbETH. These can be converted to liquid restaked tokens.
• Node Operators Integrated: Collaborates with P2P.org and InfStones to ensure secure validation within the EigenLayer ecosystem.
• Actively Validated Services (AVSs): Secures services such as Lagrange, eOracle, and OpenLayer within the EigenLayer ecosystem.
• Native Restaking Access: Enables users to seamlessly access Native Restaking through an alliance with ssv.network (decentralized ETH staking).
• Institutional Client Framework: Eigenpie Enterprise has onboarded Matrixport as its first institutional client.
• Eigenpie Points System: Users earn points for the EGP token airdrop and IDO allocation based on their participation.

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What Are Eigenpie Liquid Restaked Tokens?

Eigenpie Liquid Restaked Tokens (LRTs) are innovative tokens designed to isolate the performance and risks of individual Liquid Staked Tokens (LSTs). These tokens offer a more secure and tailored restaking experience, allowing users to convert their LSTs into an isolated liquid restaking version.

Unlike traditional restaking, where multiple assets might be bundled together, Eigenpie’s approach ensures that each LRT is exclusively linked to the performance of its original LST, providing a targeted option for risk-averse users. This system helps mitigate risk by ensuring that issues with one LST only affect holders of that specific token.

EigenPie offers a range of LRTs, including mstETH for stETH (Lido), mrETH for rETH (Rocket Pool), mwBETH for wBETH (Binance), mmETH for mETH (Mantle), msfrxETH for sfrxETH (Frax Finance), and mcbETH for cbETH (Coinbase). The platform also supports LRTs from other notable LSTs, including those from Swell, Stader, StakeWise, Ankr, Origin, and Liquid Collective.

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Eigenpie Native Restaking

EigenPie’s Native Restaking, facilitated through its integration with ssv.network, decentralizes the validation process, thereby enhancing the reliability, security, and potential rewards for ETH stakers within the EigenLayer framework. This collaboration leverages Distributed Validator Technology (DVT) to distribute validation tasks across multiple operators, minimizing the risks associated with centralization and improving staking outcomes.

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EGP Tokenomics

The EGP token serves as the governance and reward ERC-20 token within the Eigenpie ecosystem, with a token generation event (TGE) date still unknown. However, the tokenomics outline the distribution of coins, while the Eigenpie points give a trackable system for the users' progress:

• Allocation: EGP tokens are distributed with a total supply of 10 million, where 40% is allocated to the initial DEX offering (IDO), 35% to community incentives, 15% to Magpie Treasury, and 10% as an airdrop for early supporters.
• Points System: Users earn Eigenpie Points by depositing Liquid Staked Tokens (LSTs), with 1 point accumulated per hour for every ETH-equivalent deposited, and additional points earned through referrals and group achievements.
• Referral Program: Referrers earn 0.1 points per hour for every point their referees accumulate. The referral program also includes bonus points as group deposits reach milestones, with up to a 2x rate boost at 5000 ETH.
• Airdrop: Users qualify for airdrops of EGP tokens based on the Eigenpie Points they accumulate. The first airdrop will distribute 1% of the total EGP to 100,000 users of Binance and OKX.

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How to Restake With Eigenpie

According to the official documents here is how the restaking with Eigenpie works:

1. Enter the Eigenpie app.
2. Connect your crypto wallet.
3. Navigate to the "Restake" tab.
4. Select a pool to restake your ETH LSTs.
5. Approve the pre-deposit of your LSTs into Eigenpie.
6. Pre-deposit your LSTs to start earning Eigenpie Points.
7. To unstake, follow the same steps and approve the unstaking process. After the escrow period (8 to 16 days), withdraw your LSTs.

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Bottom Line

EigenPie builds on top of traditional Ethereum staking, liquid staking, and EigenLayer's restaking by isolating the risk of individual LSTs. Today, the liquid restaking category is valued at $10.6 billion in total value locked, with EigenPie capturing roughly 12% of the market, placing it in the fourth position.

EigenPie’s unique approach lies in the isolation of risks associated with specific Liquid Staked Tokens (LSTs) and despite early concerns, the platform has been audited three times by BlockSec, PeckShield, and AstraSec, ensuring its security.

Meanwhile, competitors like Ether.fi and Renzo have released their tokens and expanded to multiple chains, and KelpDAO is now operating across 11 blockchain networks. As new protocols emerge each month, the battle for market share in liquid restaking tokens will only intensify.