Prisma Finance, The end game for liquid staking tokens.
Overview
Prisma is a new DeFi primitive focused on unlocking the full potential of Ethereum liquid staking tokens (LSTs).
Prisma allows users to mint a stablecoin (mkUSD) fully collateralized by liquid staking tokens. The stablecoin will be incentivized on Curve and Convex Finance to create a capital-efficient flywheel where users can receive trading fees, CRV, CVX, and PRISMA on top of their Ethereum staking rewards.
Prisma’s codebase is completely immutable, based on Liquity, in order to create a robust protocol and truly decentralized stablecoin with favorable and flexible collateral parameters to make it attractive for those wanting to get the best out of their LSTs without tail risks from other stablecoins. The Prisma DAO will be in charge of parameters, emissions, and protocol fees.
Backed by the best
Prisma is backed by Curve Finance founder, Convex Finance founders, FRAX Finance, Conic Finance, Tetranode, Llama Airforce, Michael B. of LlamaNodes, Coingecko Founders, Amplice and Ivan from GearBox, OKX Ventures, DeFiDad, MrBlock, Impossible Finance, 0xMaki, GBV, Agnostic Fund, Swell Network Founder, Magnus from Dialectic Fund, Carlos from BITKRAFT, Adam Cochran, Eden Director of research at The Block, Kinnif from Fisher8, Tascha from Stella, Ankr Founders, Sam from NodeGuardians, MCEG, Eric Chen and Mirza from Injective, and many more.
Current state
The market for Ethereum Liquid Staking Tokens (LSTs), which has grown significantly in recent years, is currently at $18 billion, or around 10% of the entire market value of Ethereum, and recently became the biggest DeFi category by TVL according to DeFiLlama making it the biggest addressable market in DeFi.
Utility
Prisma allows users to mint Prisma’s native overcollateralized stablecoin (mkUSD) against any of the below-listed LSTs, providing holders of liquid-staking ETH tokens with unrivaled capital efficiency. With the help of Ethereum staking rewards, loans secured by LSTs eventually pay themselves back.
With the addition of a Curve pool, users can then stake their stablecoins and receive further rewards in the form of CRV and CVX which the protocol will heavily incentivize by participating in the Curve wars.
Liquity Prisma
Prisma’s codebase is based on Liquity. We have done our best to respect their ethos which we strongly believe embodies the best of DeFi: immutability, robustness, and decentralization. We also wanted Prisma to be unique and stand on its own so we’ve added flexibility at the governance level over collaterals, parameters, and much more. Using veTokenomics, Prisma holders will have more control over the protocol but more on that below.
PRISMA: Token Governance
PRISMA uses the veToken model which controls several aspects of the protocol:
-
The stability pool
-
Pool parameters for new collaterals
-
Protocol fees
-
Emissions (and which collateral should receive them)
Governance participants, among other things, have the ability to incentivize the minting of mkUSD or change mint and borrow fees on their collateral of choice with the goal of incentivizing LST protocols to participate in Prisma’s governance. vePRISMA holders can also choose to incentivize any LP tokens with PRISMA emissions.
Assets
Prisma will launch supporting the following assets:
-
wstETH (Lido)
-
cbETH (Coinbase)
-
rETH (Rocket Pool)
-
sfrxETH (Frax Ether)
-
WBETH (Binance)
Wen
In the coming weeks, we will reveal more about Prisma, its launch, its tokenomics, and its novel mechanisms while the protocol goes through multiple audits from the best auditors there are.
Links
Twitter: https://twitter.com/PrismaFi
App: https://www.prismafinance.com
Community: https://discord.gg/prismafinance
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP’s 16-Day $3 Surge Sparks Hopes of Breaking All-Time Highs

Trump turns on ‘buddy’ Putin over Ukraine, says he’ll slap Russia with sanctions now
Share link:In this post: Trump warned he may hit Russia with new sanctions after fresh missile attacks on civilians. Trump met with Zelenskyy in Rome and called the meeting productive, but gave no full details. Trump offered a peace deal that includes recognizing Crimea as Russian territory, which Zelenskyy rejected.
Trump’s economic and geopolitical failures took center stage at Pope Francis’ funeral
Share link:In this post: Trump’s economic and diplomatic tensions took over the spotlight at Pope Francis’ funeral. Trump met briefly with Zelenskyy, Macron, and Starmer during the service but made little progress. Trump skipped a second meeting with Zelenskyy and left Rome quickly after the Mass.

Elon Musk and Nobel laureates call for investigation into OpenAI’s nonprofit mission
Share link:In this post: Elon Musk called OpenAI restructuring plan the “scam of the century” after experts oppose it. Legal and AI experts have called on Attorneys General of Delaware and California to OpenAI core mission as a non-profit. Concerns about Open AI deviating from its non-profit origins is not limited to Musk.

Trending news
MoreCrypto prices
More








