MGP Magpie

Use Cases of Magpie

Magpie offers a variety of use cases that simplify and enhance the experience of interacting with different blockchains and tokens. Here are some of the key use cases:

Cross-chain Swaps

• Simplified Swaps: Swap almost any token across many of the top chains, all in one interface, without the need to use bridges or go to multiple websites. This process is streamlined and efficient, providing an amazing price due to Magpie's unique order routing algorithm.
• On-chain Swaps: Swap almost any token on-chain while benefiting from Magpie's order routing algorithm to receive the best price across all major DEXs. Magpie will even pull liquidity from multiple DEXs if it gets the user a better price.

Cross-chain Yield Farming, Lending & Borrowing, and NFT Purchases

• Yield Farming: Users will be able to join yield-farming opportunities on or cross-chain through the Magpie interface, in just a couple of clicks, saving users time and gas fees.
• Lending & Borrowing: Users will eventually be able to borrow or lend from markets such as AAVE & Compound, all within Magpie's easy-to-use interface.
• Cross-chain NFT Markets: Planned for a future update, users will be able to browse NFT marketplaces and purchase the NFT they want, using any token they want, through Magpie's interface.

Integration with Wallet Apps & DEXs

• DeFi Simplification: Magpie enables wallet providers, DEXs, or other dApps to enable cross-chain staking, trading, and lending through the Magpie interface, abstracting away the complexity of DeFi & order routing.

Institutions & Professional Traders

• Low-latency Infrastructure: Magpie provides a low-latency and capital-efficient infrastructure that is optimal for professional market makers and traders to deploy their automated strategies.

NFT Marketplaces

• Cross-chain NFT Purchases: Connect with the Magpie API to allow users to buy NFTs with any digital asset across any of the connected blockchains with just a few clicks.

Web3 Projects

• Multi-chain Access: With Magpie, other projects can tap into other blockchains and ecosystems, both multi-chain and single-chain, by enabling one-click lending, staking, yield farming, and more.

[Source: https://docs.magpiefi.xyz/magpie-protocol/magpie-protocol-an-introduction/what-is-magpie-protocol/use-cases]

Pros of Magpie

• Ease of Use: Magpie provides a seamless user experience, focusing on ease of use, transaction cost, and execution speed. It allows users to swap and transact between different blockchains without locking their funds into a bridge contract or centralized exchange.
• Boosted Yields: Magpie offers users the opportunity to earn boosted rewards for their stablecoins, BNB, or Liquid Staked BNB without having to lock WOM tokens themselves. This is achieved by accumulating and locking WOM tokens as veWOM on Wombat Exchange.
• Governance Benefits: Users can participate in governance voting on Wombat Exchange by locking their MGP tokens as Vote-Locked MGP (vlMGP), which also earns them enhanced rewards and governance power.
• Diversified Earnings: Magpie enables WOM holders to earn high APR% by converting their tokens into mWOM and staking them to earn WOM and MGP rewards.
• Cost-Effective Voting Power: Users can acquire voting power on Wombat Exchange cost-effectively through MGP, with vlMGP holders participating in governance decisions and potentially earning bribes from Wombat partners.

Cons of Magpie

• Complexity: The Magpie protocol has many intricate parts, which can make it difficult for some users to understand and navigate.
• Dependency on Wombat Exchange: Magpie's functionality and benefits are heavily dependent on Wombat Exchange, which could be a risk if Wombat faces any issues.
• Limited Token Support: While Magpie supports a variety of tokens, it is primarily focused on stablecoins and WOM, which might limit its appeal for users interested in other tokens.
• Lock-Up Periods: Although users do not have to lock WOM tokens themselves, Magpie locks WOM tokens as veWOM for 4 years, which could be a drawback for some users.

Founders of Magpie

• Ali Raheman: CEO & Co-founder
• Ikram Ansari: CIO & Co-founder
• Gergely Hegyközi: CTO & Co-founder

These individuals are the key team members behind Magpie, a decentralized liquidity aggregation protocol for cross-chain swaps. Their backgrounds and expertise are instrumental in shaping the project's vision and direction.

Investors in Magpie

Magpie has secured funding from a variety of notable investors. Here are some of the key investors:

• Jump Crypto: The lead investor, known for supporting projects focused on decentralized finance (DeFi) innovation.
• GSR Markets: An investment firm that partners with entrepreneurs building the future of finance, providing robust liquidity.
• ParaFi Capital: A venture capital firm that selects investments based on business fundamentals and the potential to disrupt markets.
• Republic Capital: Focuses on investments with strong unit economics and strategic potential.
• Sandeep Nailwal: An angel investor who supports innovative projects.
• Big Brain Holdings: A venture capital firm that invests in promising projects.
• D1 Ventures: A venture capital firm that supports early-stage projects.
• Faculty Group: A venture capital firm that invests in innovative technologies.
• MH Ventures: A venture capital firm that supports projects with high growth potential.
• ArkStream Capital: A venture capital firm that invests in emerging technologies.
• Apollo Capital: A venture capital firm that supports projects in the crypto space.
• Serafund: A venture capital firm that invests in innovative projects.

These investors have contributed to Magpie's $3 million seed round, supporting its mission to enable seamless cross-chain swaps.

Halal Status of Magpie

Yes, Magpie is considered halal by many Islamic scholars. The reasoning is based on several key points:

Islamic Principles and Cryptocurrency

• Anti-Interest: Islamic banking laws are anti-interest, and cryptocurrencies operate outside conventional banking systems, aligning with this principle.
• Blockchain and Shariah Compliance: The blockchain technology used in cryptocurrencies like Magpie ensures secure and automated contractual relationships, which are seen as Shariah compliant.
• Ownership and Control: In cryptocurrencies, ownership remains with the owner, and transactions are controlled by the user, which aligns with Islamic finance principles.

Scholarly Views

• Mufti Muhammad Abu-Bakar: He argued that Bitcoin (and by extension, other cryptocurrencies like Magpie) is permissible under Islamic principles because all currencies have a speculative element, which does not automatically make them haram.
• Shariah Scholars: Many scholars believe that cryptocurrencies are halal because they are based on social justice, accountability, and ethics, which are core to Shariah law.

General Consensus

• Halal Reports: Various reports and analyses have concluded that many cryptocurrencies, including Bitcoin and others, are halal.
• Islamic Finance Integration: The integration of cryptocurrencies into Islamic finance is supported by many scholars who view them as a legitimate form of digital currency.