Applicant Name : Magpiexyz Ltd
Project Name: Magpie XYZ
Project Description :
Magpie XYZ is an ecosystem of protocols focused on providing yield and veTokenomics boosting services for other platforms across the DeFi space. Magpie is the first DAO created within Magpie XYZ, while Penpie is its first SubDAO, designed to support Wombat Exchange and Pendle Finance respectively. The next SubDAOs, Radpie and Campie, are under development and will soon launch on Arbitrum to support the functionalities of Radiant Capital and Camelot DEX.
Team Members and Qualifications :
- Alan: Project Lead - Previously worked at google
- Grimmace: Tech Lead - Silicon Valley Veteran
- Ecosystem homepage: https://www.magpiexyz.io/
- Magpie: Magpie XYZ
- Penpie: Magpie XYZ
- Radpie: Magpie XYZ
- Campie: N/A
Github: magpiexyz · GitHub
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size: 1,250,000 $ARB
Grant Matching: To promote sustainable growth, the Magpie Ecosystem will offer incentives in addition to distributing ARB tokens.
Total Grant Allocation: 1,250,000 million ARB tokens
This grant is for Magpie as well as three different SubDAO projects within the Magpie XYZ Ecosystem: Penpie, Radpie, and Campie. 100% of the grant will be used to bolster user participation and community engagement on Arbitrum through Magpie, Penpie, Radpie, and Campie.
Our primary objective is not simply to increase yield. Rather, we have directed 80% of our incentive to blackhole PENDLE/GRAIL/dLP/WOM, aiming to bolster the long-term growth of the associated protocols. We are convinced that by encouraging users to lock in their tokens permanently, we can achieve a sustained positive effect on the ecosystem, which will persist even after the ARB incentive phase ends.
Magpie (100,000 ARB tokens)
- WOM Conversion incentives Allocation: 80% (80,000 ARB tokens)
- Purpose: Incentivize users converting WOM tokens into mWOM on Magpie, mWOM stakers and mWOM/WOM liquidity providers.
- Token Allocation: Proportional to the amount of WOM users convert, stake.
- Event Distribution: 4 events (WOM UP, Spin the wheel, etc) to incentivize conversion, mWOM/WOM liquidity pair.
- Liquidity Providers Allocation: 20% (20,000 ARB tokens)
- Purpose: Boost user participation by incentivizing liquidity providers in Magpie pools on Arbitrum.
- Distribution: The 20,000 ARB tokens will be divided into 4 batches. Every month post-grant receipt, 5,000 ARB tokens will be allocated to benefit liquidity providers on Magpie.
Penpie (500,000 ARB tokens)
- PENDLE Conversion incentives Allocation: 80% (400,000 ARB tokens)
- Purpose: Incentivize users converting PENDLE tokens into mPENDLE on Penpie, mPENDLE stakers and mPENDLE/PENDLE liquidity providers.
- Token Allocation: Proportional to the amount of PENDLE users convert, stake.
- Event Distribution: 4 events (PENDLE RUSH, Spin the wheel, etc) to incentivize conversion, mPENDLE/PENDLE liquidity pair.
- Liquidity Providers Allocation: 20% (100,000 ARB tokens)
- Purpose: Boost user participation by incentivizing liquidity providers in Penpie pools on Arbitrum.
- Distribution: The 100,000 ARB tokens will be divided into 4 months. Every month post-grant receipt, 25,000 ARB tokens will be allocated to reward liquidity providers on Penpie.
Radpie (350,000 ARB tokens)
- dLP conversion incentives Allocation: 80% (280,000 ARB tokens)
- Purpose: Incentivize users converting dLP tokens into mdLP on Radpie, mdLP stakers and mdLP/dLP liquidity providers.
- Token Allocation: Proportional to the amount of dLP users convert, stake.
- Event Distribution: 4 events (dLP RUSH) to incentivize conversion, mdLP/dLP liquidity pair.
- Liquidity Providers Allocation: 20% (70,000 ARB tokens)
- Purpose: Boost user participation by incentivizing liquidity providers in Radpie pools on Arbitrum.
- Distribution: The 70,000 ARB tokens will be divided into 3 months. Starting from November, 23,333 ARB tokens will be allocated to benefit liquidity providers on Radpie.
Campie (300,000 ARB tokens)
- GRAIL Conversion incentives Allocation: 80% (240,000 ARB tokens)
- Purpose: Incentivize users converting GRAIL tokens into mGRAIL on Campie, mGRAIL stakers and mGRAIL/GRAIL liquidity providers.
- Token Allocation: Proportional to the amount of GRAIL users convert, stake.
- Event Distribution: 4 events (GRAIL RUSH) to incentivize conversion, mGRAIL/GRAIL liquidity pair.
- Liquidity Providers Allocation: 20% (60,000 ARB tokens)
- Purpose: Boost user participation by incentivizing liquidity providers in Campie pools on Arbitrum.
Distribution: The 60,000 ARB tokens will be divided into 3 months. Starting from November, 20,000 ARB tokens will be allocated to benefit liquidity providers on Campie each month until January.
Any unused funds will be returned to Arbitrum before the January 31st deadline.
Funding Address: 0x6dc8CCF1B731e97834002e6FF45e4953Bf9602De
Funding Address Characteristics: Magpie Treasury Address, Gnosis Safe Wallet with ⅔ Multisig
Contract Address: 0x6dc8CCF1B731e97834002e6FF45e4953Bf9602De
Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.
The primary objective of the grant is to increase the user participation on the network and to support the broader Arbitrum DeFi ecosystem moving forward. Magpie is committed to Wombat Exchange, Penpie is committed to Pendle Finance, Radpie is committed to Radiant Capital, and Campie is committed to Camelot DEX. All the grants will be allocated to enhance the core functionalities of the aforementioned platforms by fostering user participation and engagement through the Magpie XYZ Ecosystem on Arbitrum.
Incentivize the conversion of WOM tokens into mWOM on Magpie. This conversion will lead to more veWOM accumulated by Magpie on Arbitrum, which in turn enhances the efficiency of the services provided by Magpie on the network, increasing the awareness of the Arbitrum DeFi space and fostering user adoption. This mechanism also supports the long-term development of Wombat Exchange, as Magpie controls token inflation by locking WOM tokens for the maximum period and extending the lock regularly. Incentivize mWOM/WOM liquidity providers to promote user participation.
By distributing 20% of the received grant for liquidity providers, we encourage users to deposit their assets on Magpie, which can result in higher TVL and more users for the Arbitrum ecosystem. This initiative is set to benefit Wombat Exchange. As Magpie incentivizes liquidity providers for their deposits, it can lead to more user participation and increased liquidity within Wombat, furthering the platform’s development.
Encourage the conversion of PENDLE tokens into mPENDLE on Penpie. By doing so, Penpie will gather more vePENDLE on Arbitrum, boosting the effectiveness of the services it offers on the network, elevating the visibility of the Arbitrum DeFi sector and onboarding new users. This strategy also aids in the sustained growth of Pendle Finance, as Penpie manages token inflation by locking PENDLE tokens for the longest duration and consistently renewing the lock. Encourage mPENDLE/PENDLE liquidity providers with incentives to boost user engagement.
By allocating 20% of the granted funds to benefit liquidity providers, we motivate users to deposit their assets on Penpie. This can lead to an increased TVL and attract more participants to the Arbitrum ecosystem. Potentially, this can support Pendle Finance by growing the community of Arbitrum LSD and LST enthusiasts, enhancing liquidity for its users and fostering a more dynamic experience.
Promote the conversion of dLP tokens into mdLP on Radpie. Through this mechanism, Radpie will amass more dLP on Arbitrum, enhancing the quality of its network services and elevating the stature of the Arbitrum DeFi landscape, which could attract new long-term users. This system facilitates the sustained expansion of Radiant Capital. Radpie effectively controls token inflation of RDNT by locking dLP tokens for the longest permissible duration within Radiant. mdLP/dLP liquidity providers will get incentives to encourage user participation.
By setting aside 20% of our received grant to reward liquidity providers, we urge users to deposit their assets on Radpie. This could lead to a boost in TVL and an influx of users to the Arbitrum ecosystem. Particularly, this could attract more deposits to Radiant Capital, fostering the platform’s growth moving forward.
Support the conversion of GRAIL tokens into mGRAIL on Campie. This action amplifies Campie’s presence on Arbitrum, enhancing its services within the ecosystem and drawing in new users. Also, this mechanism empowers Campie to lock GRAIL tokens within Camelot, ensuring control over token inflation and promoting Camelot DEX’s sustained growth. Incentivize mGRAIL/GRAIL liquidity providers to increase user participation.
By allocating 20% of our received grant to liquidity providers, we aim to entice users to stake their assets on Campie, potentially amplifying TVL and enriching the Arbitrum ecosystem with additional participants. Specifically, this can enhance liquidity within Camelot DEX, leading to a more optimized user experience for the Arbitrum Community in the future.
Key Performance Indicators (KPIs) :
- Launch WOM UP Party, events (1 per month: October, November, December, January).
- Distribution of ARB incentives for the mWOM/WOM pool
- Distribution of ARB incentives for liquidity pools on Magpie
- Accumulate extra 3 million veWOM on Arbitrum
- TVL Growth: Reach 5 million TVL on Arbitrum
- MAU: 500 on Arbitrum
- Launch PENDLE RUSH, events (1 per month: October, November, December, January).
- Distribution of ARB incentives for the mPENDLE/PENDLE pool
- Distribution of ARB incentives for liquidity pools on Penpie
- Accumulate extra 1 million vePENDLE through Arbitrum
- TVL Growth: Reach 25 Million TVL on Arbitrum
- MAU: 500 on Arbitrum
- Radpie Mainnet Launch
- Launch dLP RUSH events (1 per month: October, November, December, January).
- Distribution of ARB incentives for the mdLP/dLP pool
- Distribution of ARB incentives for liquidity pools on Radpie
- TVL Growth: Reach 7 million TVL on Arbitrum
- MAU: 500 on Arbitrum
- Campie Mainnet Launch
- Launch GRAIL RUSH events (1 per month: October, November, December, January).
- Distribution of ARB incentives for the mGRAIL/GRAIL pool
- Distribution of ARB incentives for liquidity pools on Campie
- TVL Growth: Reach 5 million TVL on Arbitrum
- MAU: 500 on Arbitrum
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem? :
Upon receiving the grant, the Magpie XYZ Ecosystem will use the funds to reward users who contribute to the core functionalities of Magpie, Penpie, Radpie, and Campie, while also supporting the development of Wombat Exchange, Pendle Finance, Radiant Capital, and Camelot DEX. Our design offers both utility and real yield opportunities. The ARB incentives aim to amplify user engagement and fortify the central features of the Magpie XYZ ecosystem, thus enriching the overarching DeFi landscape of Arbitrum via 8 distinct protocols, encompassing Magpie XYZ and the integrated protocols mentioned above.
WOM Converters: At the heart of Magpie’s functionalities is the process of locking WOM tokens as veWOM within Wombat Exchange. Users who convert their WOM via Magpie will be eligible for $ARB incentives in recognition of their contributions. This strategy aims to bolster the growth of the Arbitrum Ecosystem by concurrently supporting both Magpie and Wombat Exchange. This mechanism supports the lock-up of WOM tokens, decreasing its circulating supply while optimizing Magpie.
How do we plan to distribute these rewards?
- WOM UP Party (Participants can get $ARB tokens as rewards for their conversions)
- mWOM Stability Vault (Users who stake their mWOM via the Stability Vault will be able to share $ARB tokens as rewards)
- Spin The Wheel (Whenever users convert their WOM into mWOM using this mechanism, we will allow them to spin the wheel to receive ARB rewards. The amount of ARB incentives the user receives depends on the spin result and the amount of WOM they convert.)
- mWOM/WOM liquidity providers (By providing liquidity to the mWOM/WOM pair users can get $ARB tokens as rewards.)
Liquidity Providers: Liquidity providers are fundamental for Magpie to have a high revenue of WOM tokens from Wombat Exchange. With the goal of onboarding new users into the Arbitrum Ecosystem and Magpie, liquidity providers will be compensated with a share of $ARB rewards for their contribution to the platform’s long-term sustainability.
How does converting WOM tokens benefit the Arbitrum ecosystem?
Allow liquidity providers to get boosted yields on Magpie without the need to lock WOM tokens themselves. This will attract more risk-averse liquidity providers to Arbitrum, offering a sustainable and efficient source of revenue moving forward.
Provide mWOM holders with boosted revenue share from Magpie as a reward for their long-term support, offering Wombat Exchange users the chance to access more benefits.
PENDLE Converters: Central to Penpie’s features is the mechanism of converting PENDLE tokens to vePENDLE within Pendle Finance. Those who convert their PENDLE through Penpie will qualify for $ARB rewards in acknowledgment of their efforts. This approach is designed to enhance the expansion of the Arbitrum Ecosystem while simultaneously backing both Penpie and Pendle Finance.
How do we plan to distribute these rewards?
- PENDLE RUSH (Participants can receive $ARB tokens as rewards for their PENDLE conversions.)
- mPENDLE Stability Vault (Users who stake their mPENDLE in the Stability Vault will be eligible to receive a share of $ARB tokens as rewards.)
- Spin The Wheel (Whenever users convert their PENDLE into mPENDLE using this mechanism, we will allow them to spin the wheel to receive ARB rewards. The amount of ARB incentives the user receives depends on the spin result and the amount of PENDLE they convert.)
- mPENDLE/PENDLE liquidity providers (By providing liquidity to the mPENDLE/PENDLE pair users can get $ARB tokens as rewards.)
Liquidity Providers: Liquidity providers play a crucial role in ensuring Penpie garners a substantial revenue in PENDLE tokens from Pendle Finance. Aiming to attract more users to the Arbitrum Ecosystem and Penpie, liquidity providers will receive a portion of $ARB rewards in recognition for their dedication to the platform’s enduring stability. We propose allocating a portion of the funds from this bucket as incentives to direct more PENDLE emissions to Arbitrum pools on Penpie, aiming to enhance the network’s TVL.
How does converting PENDLE tokens benefit the Arbitrum ecosystem?
Liquidity providers can earn higher yields on Penpie without the obligation to lock PENDLE tokens by themselves. This attracts more cautious users to Arbitrum while ensuring a steady source of revenue.
Offer mPENDLE holders an enhanced revenue share from Penpie in recognition of their sustained support, allowing Pendle Finance users to enjoy additional advantages.
dLP Converters: At the core of Radpie’s offerings is the accumulation and lock-up of dLP tokens within Radiant Capital. Individuals who convert their dLP to mdLP using Radpie will be rewarded with $ARB incentives for their pivotal role. This methodology is designed to spur the development of the Arbitrum Ecosystem by simultaneously supporting both Radpie and Radiant Capital.
How do we plan to distribute these rewards?
- dLP RUSH (Participants can earn $ARB tokens as a reward for converting their dLP.)
- mdLP Staking (Users staking their mdLP through Radpie will have the opportunity to split $ARB tokens as rewards.)
- mdLP/dLP liquidity providers (By providing liquidity to the mdLP/dLP pair users can get $ARB tokens as rewards.)
Liquidity Providers: Liquidity providers are essential in driving significant revenue for Radpie from Radiant Capital. As Radpie seeks to introduce more users to the Arbitrum Ecosystem, Radpie depositors will receive a slice of $ARB earnings in appreciation for their commitment to the platform’s longevity.
How does converting dLP tokens benefit the Arbitrum ecosystem?
Radiant Capital depositors can optimize their returns on Radpie without needing to lock dLP tokens personally. This approach lures more risk-averse users to Arbitrum and also creates a consistent revenue stream.
Give mdLP holders an increased revenue share from Radpie for their continued support, offering more benefits to Radiant Capital users.
GRAIL Converters: An integral feature of Campie revolves around the lock-up of GRAIL tokens within Camelot DEX. Users converting their GRAIL tokens to mGRAIL through Campie are poised to receive $ARB rewards in recognition of their role. The overarching strategy is to accelerate the growth of the Arbitrum Ecosystem while simultaneously supporting both Campie and Camelot DEX.
How do we plan to distribute these rewards?
- GRAIL RUSH (Participants are eligible for $ARB token rewards upon converting their GRAIL.)
- mGRAIL Staking (Users who deposit their mGRAIL on Campie are eligible to receive $ARB token distributions as incentives.)
- mGRAIL/GRAIL liquidity providers (By providing liquidity to the mGRAIL/GRAIL pair users can get $ARB tokens as rewards.)
Liquidity Providers: Liquidity providers can serve as a cornerstone for Campie in generating substantial revenue from Camelot DEX. As efforts intensify to usher more users into the Arbitrum Ecosystem and Campie, liquidity providers stand to gain a fraction of $ARB rewards, a testament to their dedication in fortifying the platform’s enduring viability.
How does converting GRAIL tokens benefit the Arbitrum ecosystem?
Camelot DEX liquidity providers can amplify their rewards on Campie without the need to lock GRAIL tokens themselves. This strategy attracts more conservative users to Arbitrum and provides a steady revenue flow, potentially increasing Camelot’s TVL.
Reward mGRAIL holders with an augmented share of revenue from Campie as a nod to their loyalty, expanding the opportunities for Camelot DEX participants.
Justification for the size of the grant:
Magpie has been deployed on Arbitrum for almost 6 months now and has a TVL of 3.48 million, which represents more than 50% of the TVL within Wombat Exchange.
Penpie has been deployed on Arbitrum for almost 4 months and has a TVL of 18 million.
Currently, the Magpie XYZ Ecosystem holds over $26,000,000 in TVL within the Arbitrum network, distributed between Magpie, Penpie and Radpie. We anticipate this number to grow once and Campie is launched on the Arbitrum Mainnet.
As outlined in Arbitrum’s Short-Term Incentive Program, there are four grant categories accompanied by a set of recommended metrics. In line with these suggested qualifications, the Magpie XYZ Ecosystem would like to be considered within the "Lighthouse Grant’'. At present, Magpie and Penpie have over 20 million in TVL. We are approaching our first six months of providing services to various protocols and users on Arbitrum. Our goal is not only to onboard new users to Arbitrum but also to enhance other top-tier platforms that provide their services and innovations to the community.
Execution Strategy :
- Regular updates will be given via Medium blogs and Twitter.
- Community feedback will be actively sought and integrated.
Key Performance Indicators (KPIs):
- Launch of various incentivization events (WOM UP Party, PENDLE RUSH, dLP RUSH, GRAIL RUSH, Spin the Wheel events).
- Incentivize LPs
- Achieve targeted Total Value Locked (TVL) on Arbitrum for Magpie, Penpie, Radpie, and Campie.
- Magpie: 5 Million
- Penpie: 25 Million
- Radpie: 7 Million
- Campie: 5 Million
- Attain a Monthly Active User (MAU) count of 500 for each platform component.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the Protocol Native to Arbitrum?:
Magpie, no; Penpie, Radpie, and Campie, yes. Magpie was deployed on BNB Chain prior to being launched on Arbitrum to support Wombat Exchange. Once Wombat Exchange went live on Arbitrum, Magpie was successfully deployed on the Network. Magpie has implemented the SubDAO Model which has resulted in the development of new protocols that are native to Arbitrum.
Penpie: Native to Arbitrum and Ethereum
Radpie: Native to Arbitrum and BNB Chain
Campie: Native to Arbitrum
On what other networks is the protocol deployed?:
The Magpie XYZ Ecosystem is deployed on Arbitrum, BNB Chain, Ethereum, and OP Mainnet.
What date did you deploy on Arbitrum?:
Magpie went live on Arbitrum on April 6, 2023.
Protocol Performance :
The Magpie XYZ Ecosystem has been actively optimizing top tier DeFi protocols within Arbitrum.
Currently, the Magpie Ecosystem is the 2nd biggest yield protocol on Arbitrum by TVL.
Magpie has successfully assisted Wombat Exchange in locking over 5 million WOM tokens as veWOM on Arbitrum. At present, Magpie is the top veWOM holder on the network. Wombat’s TVL on Arbitrum is around 6 million, Magpie’s holdings surpass 3.5 million in TVL within Arbitrum, accounting for over 50% of the total TVL of the Wombat Exchange on the network. We have deployed pools for Frax, Ankr, and Penpie.
Wombat veWOM on Arbitrum: Wombat Analytics
Meanwhile, Penpie has become the go-to destination for liquidity providers of Pendle Finance. More than 7.8 million PENDLE tokens have been locked as vePENDLE within Pendle Finance by Penpie, becoming the top vePENDLE holder in the Pendle Finance ecosystem. Currently Penpie’s Arbitrum TVL exceeds $17 million. We’ve established boosted liquidity pools for Camelot, Lido, GMX, Stargate, Arbitrum, Gains Network, Rocket Pool and more.
Penpie (Top vePENDLE holder): Pendle Wars
Additionally, we successfully launched the dLP RUSH from Radpie, encouraging users to convert their dLP into mdLP. Over 740,000 dLPs have been locked by Radpie within Radiant Capital via the dLP RUSH. dLP converters receive mdLP from Radpie.
The GRAIL RUSH from Campie is also on the horizon to incentivize Arbitrum users on Camelot.
Locked WOM: +5.2 million
WOM revenue: +2.1 million
Dune Dashboard: https://dune.com/magpieanalytics/magpie-on-arbitrum
TVL (Defillama): https://defillama.com/protocol/magpie
Locked PENDLE: +7.8 million
PENDLE revenue on Arbitrum: 685,000
Dune Dashboard: https://dune.com/magpieanalytics/penpiearbitrum
TVL (Defillama): https://defillama.com/protocol/penpie
Locked dLP: +740,000
Not Launched on Mainnet
- Under Development (Expected on October - November)
Protocol Roadmap :
We look forward to the deployment of more SubDAOs within the Magpie XYZ Ecosystem to support more protocols on Arbitrum.
Audit History :
Provide details on how your team is equipped to provide data and reporting on grant distribution.
Is your team prepared to create Dune Dashboards for your incentive program?:
Yes, our data scientist will create Dune Dashboards for Magpie, Penpie, Radpie, and Campie to track metrics such as daily TVL, transactions and unique addresses. This will enable the community to easily monitor the performance of the Magpie Ecosystem. Metrics like volumes and transaction fees for incentivized protocols don’t apply to us.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Our team is committed to providing bi-weekly program updates on the Arbitrum Forum thread, emphasizing both consistency and transparency in our communications. By ensuring timely updates, we aim to keep all users informed about our progress. Integral to our reporting strategy is the utilization of the Dune Dashboard. This allows us to present accurate data and analytical insights from our ecosystem.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream? : Yes