What is Eigenpie (EGP)?

Deep Dive

1. Purpose & Value Proposition

Eigenpie tackles the capital inefficiency of staked ETH by enabling “restaking” – using staked assets to secure additional services on EigenLayer. Users deposit LSTs (like Lido’s stETH or Binance’s wBETH) to mint LRTs, which earn base ETH staking rewards and EigenLayer rewards from validating decentralized services (e.g., oracles, rollups). This dual yield is its core value.

Unlike pooled LRT models, Eigenpie’s isolated design ensures each LRT (e.g., mswETH for Swell’s swETH) only reflects the risk/reward of its underlying LST. If one LST fails, others remain unaffected (Eigenpie).

2. Technology & Architecture

Built as a SubDAO of Magpie, Eigenpie integrates with EigenLayer’s restaking infrastructure. Key features:
- LRT Minting: 1:1 conversion of LSTs to LRTs (e.g., 1 wBETH → 1 mwBETH), preserving liquidity for DeFi use.
- EigenLayer Points: Users earn these alongside rewards, potentially tradable or redeemable later.
- Audits & Node Operators: Partners with validators like P2P Validator to minimize slashing risks.

3. Tokenomics & Governance

EGP serves two roles:
- Governance: Token holders vote on parameters like reward caps (e.g., EIP #02’s 50% APR limit for vlEGP).
- Incentives: Locking EGP as vlEGP grants shares of EIGEN tokens, Zircuit rewards, and buybacks from excess emissions (EIP #02).

Conclusion

Eigenpie merges Ethereum staking with EigenLayer’s restaking economy, offering yield-seeking users a way to compound returns while compartmentalizing risk. Its success hinges on balancing isolated safety with seamless DeFi integration. Can its single-asset LRT model outcompete pooled alternatives as restaking adoption grows?