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The SubDAO Model

The Inception of SubDAO Model
Our SubDAO model signifies a groundbreaking initiative by Magpie to incubate new protocols that fortify veTokenomics-based protocols within the sprawling DeFi ecosystem. This initiative involves the birth of SubDAOs — sub-decentralized autonomous organizations — each crafted with a bespoke purpose and function that harmonizes with the parent protocol. The cornerstone of the SubDAO model is a symbiotic alliance between Magpie and the protocols it supports, fostering an environment where both entities thrive and collectively contribute to the larger growth of the DeFi landscape. The Magpie treasury is entitled to 20% of the total token supply from each SubDAO following a 2-year vesting period; this approach provides governance benefits and a new source of income for vlMGP holders.

Benefits of SubDAOs for vlMGP holders

  • Low FDV SubDAO IDO Access: vlMGP holders can secure allocations for the Initial DEX Offerings (IDO) of our SubDAOs tokens, thus facilitating easier access to these new tokens at a competitive price.
  • Revenue Sharing from SubDAOs: vlMGP holders are entitled to a share of the revenue generated by the SubDAOs, providing them with a new stream of passive income.
  • SubDAOs Voting Power: vlMGP holders are granted voting rights within the SubDAOs, empowering them to directly influence decisions and drive the direction of the SubDAOs.

Penpie: The Maiden SubDAO Venture

Penpie is live on Ethereum & Arbitrum
Under the aegis of Magpie’s SubDAO model, we proudly introduced the first SubDAO Penpie, our pioneering protocol developed to turbocharge the growth of Pendle Finance and its ecosystem. Designed with a vision to magnify yields and integrate seamlessly with the veTokenomics model, Penpie represents a unique strategy to optimize benefits for Pendle Finance users. Taking the form of a Magpie SubDAO, Penpie introduced its governance token, PNP. The initial offering of PNP with a low FDV of 3 million, was facilitated by the Camelot Launchpad through Arbitrum. The sale ended just 10 seconds after the start of the second whitelist phase.
PNP IDO on Camelot
PNP holders exercise authority over Penpie, earning a portion of its revenue by converting their assets into vlPNP. Ownership of vlPNP provides users with the access to shape the governance of both Pendle Finance and Penpie, stimulating their mutual growth and development. Looking ahead, Magpie will secure 20% of Penpie’s total supply following a two-year linear vesting period. Post this period, Magpie will yield 20% of the total voting power on the Penpie bribery market while enjoying a slice of Penpie’s revenues. This innovative structure cultivates a fresh avenue of passive income for vlMGP holders, allowing them to directly benefit from the income generated from Penpie. Through the inception of Penpie as a SubDAO, Magpie expands its horizons, enhancing the value it delivers to DeFi users.

Mapping the Future

Moving forward, Magpie is primed to weave more protocols into its fabric, paving the way for a cascade of SubDAOs. Each SubDAO, meticulously curated and birthed under Magpie’s visionary umbrella, will play a unique role within the DeFi ecosystem, supplementing and harmonizing with their respective protocols. As these SubDAOs flourish, they will infuse substantial value into Magpie. This cultivation of symbiotic partnerships enables Magpie to continuously reinforce and diversify its position within the DeFi ecosystem, consolidating its reputation as an ever-evolving powerhouse in the decentralized finance sphere.