So how does liquidation-free leverage work? 🤔
PRISM will start by distilling $LUNA into two discrete assets: principal token (PT) and yield token (YT). PT will trade at a discount to $LUNA as long as YT has a positive value (and it will) with staking returns and airdrops.
👇
PRISM will start by distilling $LUNA into two discrete assets: principal token (PT) and yield token (YT). PT will trade at a discount to $LUNA as long as YT has a positive value (and it will) with staking returns and airdrops.
👇
So imagine being able to buy $pLUNA at a 25-30% discount to $LUNA by forgoing future staking yield. A strategy apt for degens and chads/chadesses who want to maximize their principal exposure to the moon 🌖
By deconstructing assets into their attendant principal and yield components, PRISM creates new liquid markets to form around these elements 🧑🔬
Soon, you'll be able to simply pledge your $LUNA and receive one lump-sum $UST payment to monetize its future staking yields 💸
👇
Soon, you'll be able to simply pledge your $LUNA and receive one lump-sum $UST payment to monetize its future staking yields 💸
👇
And who's on the other side of this trade with a lump-sum $UST payment to buy the yield token ($YT)?
It is likely some smart #LUNAtic who is bullish on the burgeoning #TeFi ecosystem and expects $LUNA's future staking yields to be higher with more txn fees and airdrops 🧠💰
It is likely some smart #LUNAtic who is bullish on the burgeoning #TeFi ecosystem and expects $LUNA's future staking yields to be higher with more txn fees and airdrops 🧠💰
What's super exciting is that PRISM will create yield curves for every DeFi asset as it refracts and enables ultimate composability
For the first time, there will be a robust term structure and tradable 3-month, 6-month, 12-month dates on $LUNA, $ATOM, $DOT, and more 📉📈
For the first time, there will be a robust term structure and tradable 3-month, 6-month, 12-month dates on $LUNA, $ATOM, $DOT, and more 📉📈
• • •
Missing some Tweet in this thread? You can try to
force a refresh
