PRISM is launching on Feb 1st. We have received many questions regarding:
1⃣ The utility of the $PRISM token
2⃣ How the $xPRISM governance token works
3⃣ $PRISM token distribution.
Please see the @Medium article for more details.
A thread 🧵 below 👇
prism-protocol.medium.com/the-prism-and-…
The $PRISM token will be the base asset of each liquidity pool on the PRISM Swap DEX.
As the amount of assets refracted by PRISM increases, more liquidity pools with $PRISM will be created. Assets like $bSOL, $bETH, $bATOM $aUST, @astroport_fi LP tokens etc....
And if the value of the non-PRISM assets in the pools increases, so must the value of the $PRISM in those pools....
The $xPRISM Token:
PRISM holders who wish to participate in governance and earn protocol fees can stake their $PRISM tokens and receive $xPRISM in return, with a 21 day unstaking period. They will also be able to instantly swap their $xPRISM back to $PRISM on the AMM.
$xPRISM holders also earn a share of the fees levied by the protocol...
A user can stake $PRISM into the $xPRISM pool and receive $xPRISM tokens in return. The $xPRISM tokens they receive represent their ownership share of the total amount of $PRISM tokens in the $xPRISM pool....
Fees the protocol levies are used to buy $PRISM tokens on the decentralised exchange and those $PRISM tokens are distributed into the $xPRISM pool.
As a result the exchange rate between $xPRISM : $PRISM increases in the same manner as $aUST : $UST.
As such $xPRISM is an auto-compounding token.
This image shows a hypothetical example of how $xPRISM could work:
Auto-compounding tokens have many benefits..
They can:
1⃣ be capital assets rather than manually claiming income
2⃣ compound whilst still being liquid
3⃣ compound whilst being LP'd
4⃣ compound even when cross-chain
5⃣ compound whilst being lent out or used as collateral
PRISM Initial Distribution
70,000,000 $PRISM tokens will be distributed in the PRISM Forge launch event. After the launch, PRISM governance will be switched on and the $PRISM - $UST and $xPRISM - $PRISM liquidity pools will be seeded on the PRISM Swap decentralised exchange.
Participants in PRISM Forge will be making an active choice to buy tokens. Given there are no airdrops and no team tokens released at TGE, the only people with $PRISM tokens in the phase 2 DEX listing are people that will have already chosen to actively buy $PRISM in phase 1.
For more details on the launch please see...
prism-protocol.medium.com/prism-launch-a…
And for FAQ and all major links please see prismprotocol.notion.site
Please join us in @discord or @telegram if you have any questions or would like to chat about PRISM.
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