Magpie $MGP

Magpie XYZ is a unique platform designed to work with the BNB Chain, aimed at enhancing yields for liquidity providers and governance token holders of veTokenomics protocols. The platform presents a solution to common challenges faced by many veTokenomics protocols, thus providing a more effective way for stakeholders to interact and benefit from these systems.

Understanding veTokenomics

veTokenomics, a model introduced by Curve, is a system where users must commit the governance token to veToken (vote-escrowed token) for a fixed duration. This arrangement increases their voting power and claims on the governance token emissions of a protocol. In turn, it aids the protocol in managing governance token inflation while distributing more governance tokens to long-term holders. However, there is scope for refinements in the veTokenomics structure, as many protocols grapple with a few shared issues.

Challenges in veTokenomics Protocols

Several veTokenomics protocols encounter difficulties such as a limited user base due to the requirement of buying & locking governance tokens, which deters many risk-averse liquidity providers from participation. Moreover, veToken holders often earn nominal or no passive income, making the investment less attractive. Additionally, acquiring voting rights can be quite expensive as voters must purchase and secure governance tokens.

How Magpie XYZ Tackles These Challenges

Magpie XYZ addresses these predicaments with its novel approach. It encourages governance token holders and liquidity providers to pool their resources together. The platform then utilizes the pooled assets to secure governance tokens, convert them into veTokens, and amplify yield for liquidity providers. Part of the protocol revenues generated from the enhanced profits of the liquidity providers is then returned to governance token holders.

Broadening User Base and Increasing Income

Magpie XYZ offers an attractive proposition to risk-averse liquidity providers by allowing them to enjoy higher yields without the need to hold veToken, thereby expanding the scope of veTokenomics protocols. Furthermore, by sharing part of the platform’s revenue, it provides veToken holders with an avenue to increase their income, making participation in veTokenomics protocols more lucrative.

Lowering Voting Barriers

Magpie XYZ also offers a cost-effective path to acquire voting rights on veTokenomics protocols. This is achieved by leveraging the