Innovative advantages and gameplay of the governance yield aggregator Magpie.

Everyone is familiar with the concept of voting governance. The veTokenomic model, which originated from Curve, requires users to lock their governance tokens for a certain period of time as veTokens in order to increase their APR and decide on the release of governance tokens through voting. This helps the platform control governance token inflation and allocate more governance tokens to long-term holders. However, the veTokenomics model is not perfect and there is still room for improvement, such as the following issues:

-The requirement to buy and lock up for a period of time has prevented many users from participating.

-veToken holders have low or even zero income.

-High-cost voting rights - Users must purchase and lock tokens to obtain voting rights, but do not qualify for passive income.

With the innovation of DeFi, solutions dedicated to high staking rewards and increased voting power have emerged. Today, we introduce a project called Magpie, which maximizes user profits by introducing the veToken mechanism.

Magpie Introduction

Magpie is a revenue aggregator and multi-chain DeFi application established through a partnership with the Wombat trading platform in the encryption industry. The project utilizes Curve's veToken mechanism to reward long-term holders by reducing supply, while distributing governance rights to token holders.

This agreement is supported by the trading platform Wombat, and Magpie currently manages about 30% of the governance power of Wombat to help optimize its various cross-chain DeFi services. As of the time of writing, Magpie's lock-up amount is 19.16 million US dollars, and the Magpie platform involves two important tokens, WOM and MGP. WOM is the token of the Wombat trading platform, while MGP is the platform token of Magpie.

Users can deposit their stablecoins, BNB, Liquid BNB, frxETH, ETH, WOM, and mWOM into the single-sided pool on the platform to earn high APR and support governance voting on the Wombat trading platform, earning passive income. Magpie locks all converted WOM as veWOM on Wombat, accumulating veWOM in this way, which gives Magpie the right to receive higher WOM rewards and governance benefits on Wombat.

MGP is the governance and revenue-sharing token of Magpie. Users can lock MGP at a 1:1 ratio to obtain vlMGP. Locking MGP can earn passive income on the platform and share governance benefits (the platform receives MGP staking rewards and revenue sharing). The voting rights of veWOM and vlMGP holders can be shared, and both types of holders can vote on Wombat's governance.

Wombat and Magpie

As mentioned earlier, when it comes to Magpie, we cannot ignore the Wombat trading platform. Wombat is an innovative multi-chain stablecoin trading platform that is committed to minimizing slippage when swapping stablecoins and staking them for maximum returns. Wombat also uses the veToken model, with its platform token being WOM. WOM holders can lock their WOM as veWOM to provide liquidity and ensure governance rights, thereby obtaining higher APR.

For more information about Wombat's background, mode, financing, and more, please refer to "Wombat Exchange: Stablecoin DEX on BSC".

Magpie Use Cases and Advantages

Magpie can maximize the WOM use cases for WOM holders, which are divided into four categories:

Improve rewards for WOM holders

Through Magpie, WOM holders can convert tokens into mWOM for higher returns. This benefits holders by allowing them to earn more profits.

-MGP

-12% WOM revenue sharing

-Magpie has also accumulated WOM governance rights, following a model similar to PlutusDAO.

增加 LP 奖励
Increase LP rewards

After locking WOM on Magpie, users can increase their tokens in the liquidity pool and enjoy higher rewards by providing liquidity after converting WOM to veWOM.

Provide effective voting rights

On Magpie, WOM holders can lock their tokens to participate in governance, earn passive income, and maintain control over voting rights through ownership of $MGP, but they will also give up their earnings on Wombat.

Control the circulation and supply of WOM

All WOM on Magpie will be automatically permanently locked, providing maximum returns by controlling the circulation and supply of WOM.

How to Use Magpie

For depositors

First, choose the network available to you (Arbitrum or BNB Chain), select Liquidity Pools, and deposit your available assets. This article uses USDT as an example.

After depositing into the pool, you can see your LP on the interface. Once the deposit is successful, your account will start receiving WOM or MGP rewards.

You can now lock your MGP 1:1 for vIMGP, maximizing the value of your assets through voting and bribery. Of course, you can withdraw your assets at any time during this process.

For WOM stakers

For WOM holders, it is necessary to choose Magpie Pools, which currently offers three options to convert WOM holdings into mWOM upon clicking.

You can purchase WOM through Uniswap and then convert and stake it through Magpie. Currently, the APR for Magpie Pools looks very good.

There are two points to note. Firstly, the ratio of WOM to mWOM is more than 1:1, which means you can receive more mWOM than the total amount of WOM. Secondly, the conversion from WOM to mWOM is irreversible. You can stake and unstake mWOM, but you cannot convert it back to WOM. In the secondary market, mWOM can be exchanged for WOM at different market prices.

For MGP holders

MGP holders need to lock their MGP in Magpie to receive vlMGP at a 1:1 ratio. The benefits of holding vlMGP include earning profit sharing, earning MGP rewards, maximizing Wombat's voting power, Magpie's governance benefits, receiving rewards that others have forfeited, and receiving bribes. MGP can be purchased through Trader Joe/PancakeSwap.

Once MGP is locked, it will be in an infinite locked state. After the user clicks "Start Unlocking", there is a 60-day unlocking period, also known as a cooling-off period. Forced unlocking requires payment of a certain fee, and MGP cannot participate in voting governance during the cooling-off period.

Claim Rewards and Vote

Magpie's earnings collection can be completed through the Claim and Bribe options on its interface, where you can see the share of earnings you are eligible to receive. Simply select the corresponding portion to complete the collection process.

And its Bribe interface will display the received Bribe and voting status, such as when to participate in Wombat's cast votes for governance.

Penpie launched in collaboration with Pendle

除了与Wombat 合作之外，Magpie 还为 Pendle 打造了 Penpie，Penpie 是 Magpie 与 Pendle 合作推出的一款产品，目前支持以太坊主网和 Arbitrum。

Translation:

In addition to collaborating with Wombat, Magpie has also created Penpie for Pendle. Penpie is a product launched by Magpie in collaboration with Pendle and currently supports Ethereum mainnet and Arbitrum.

Similarly, the gameplay of Penpie is similar to Magpie but simpler. Users convert PENDLE to mPENDLE through Penpie to earn PNP rewards. PNP is the governance token that Penpie will soon issue. Currently, the total deposit of Penpie is 2.41 million PENDLE.

Users who deposit on Penpie will receive some benefits:

- Will be eligible for 2% of the PNP supply quota. PNP will be allocated to users based on their points, which are evaluated as follows:

Deposit 0-1000 PENDLE and convert, earning 1 point for each PENDLE.

Deposit 1000-5000 PENDLE and convert, earning 1.1 points per PENDLE;

Deposit 5000-20000 PENDLE and convert, earning 1.3 points per PENDLE;

Deposit 20000-100000 PENDLE and convert, earning 1.6 points per PENDLE;

Deposit 100000 or more PENDLE and convert, each PENDLE earns 2 points.

-When Penpie is fully launched, it will receive an mPENDLE airdrop, which allows for cross-chain transactions between Ethereum and Arbitrum.

Attention, the conversion from PENDLE to mPENDLE is still irreversible. Currently, there is only one option available for staking on this interface.

In the future, Penpie will allow PENDLE holders to receive more PENDLE rewards as passive income, providing cost-effective voting rights for Pendle Finance users, and allowing liquidity providers to obtain higher APR% without locking PENDLE as vePENDLE.

Opportunities to earn generous rewards by converting PENDLE to mPENDLE through Penpie are available to PENDLE holders. Users can stake mPENDLE on Penpie and earn PENDLE rewards. When users convert PENDLE to mPENDLE, Penpie automatically locks the converted PENDLE as vePENDLE in Pendle Finance. This mechanism allows PENDLE holders to earn greater returns through mPENDLE, while also granting Penpie governance rights and higher APR as an LP of Pendle Finance.

Penpie shares the voting power accumulated through its ownership of vePENDLE among vlPNP holders, enabling them to participate in Pendle Finance governance in a cost-effective manner, which can be locked in as vlPNP to obtain its benefits.

PNP holders who have their votes locked can receive income sharing from the platform and effectively influence the governance of Pendle Finance while maximizing their returns. Similar to viGMP, users must wait 60 days for vlPNP to fully unlock as PNP.

Penpie IDO

Recently, Penpie is conducting its token PNP's IDO. The FDV of Penpie IDO is 3 million US dollars, with an upper limit of 600,000 US dollars (20% of the total supply), allowing early supporters to purchase PNP at an extremely advantageous price.

Currently, Penpie IDO has launched the PNP Priority Access Plan for users to obtain priority purchase qualifications, including:

-mPENDLE Holder-30%

-Penpie Liquidity Provider-30%

-vlMGP holder - 25%

Galxe launch event (lucky draw) - 5%

The funds raised by IDO will be used for:

-40% of the initial PNP/ETH liquidity: used to ensure the stability and strength of the PNP liquidity pool;

-30% for development and operation: used to improve Penpie, optimize its functions, and maintain smooth and uninterrupted operation.

-20% for marketing and business development: ensuring the continuous growth of Penpie, increasing our brand awareness, attracting new users, and developing partnerships.

-10% for auditing: ensuring the platform remains secure, reliable, and trustworthy.

Partner and Audit

Magpie's collaboration lineup is also very impressive, including institutions such as Chainlink, Galxe, and Wombat.

Cooperation

Audit

Magpie has currently passed audits from PeckShield and Zokyo.

Conclusion

Although the high-yield mechanism introduced by Magpie may be somewhat complex, it undoubtedly creates a new model for the veToken mechanism, allowing users to enjoy governance rights while also bringing high returns. Currently, it appears that this approach of tokenizing governance rights and maximizing user returns can bring some new things to DeFi, and we look forward to Magpie collaborating with more projects to bring users more intuitive returns.

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