1./ If you noticed, @prism_protocol just released a sneak peak of their platform and it looks wonderful.
Lately I made some threads about them because I think what they're building is revolutionary and is going to chance the whole #DeFi game.
Lately I made some threads about them because I think what they're building is revolutionary and is going to chance the whole #DeFi game.
2./ However, despite my threads not everyone seems to get it yet. And to be honest, I can imagine. It's not easy to understand, but when you get it... I think you're going to be just as bullish as me.
So let's make another thread about @prism_protocol:
So let's make another thread about @prism_protocol:
3./ What is @prism_protocol?
Quote: "PRISM is a revolutionary derivatives protocol that introduces new asset classes in DeFi, allowing
users to manage the risks associated with volatile prices and unstable yields in a simple and
capital-efficient manner...
Quote: "PRISM is a revolutionary derivatives protocol that introduces new asset classes in DeFi, allowing
users to manage the risks associated with volatile prices and unstable yields in a simple and
capital-efficient manner...
4./ ... PRISM achieves this by refracting digital assets into two distinct parts: a yield component and a principal component."
So PRISM is going to split an asset into a yield component and a principal component.
So PRISM is going to split an asset into a yield component and a principal component.
5./ Actually, it enables you to do so. PRISM does nothing, you got to refract the asset yourself. How does this work? In this thread we take $LUNA as example.
Once you deposit 1 $LUNA into @prism_protocol, you mint 1 $yLUNA and 1 $pLUNA.
Once you deposit 1 $LUNA into @prism_protocol, you mint 1 $yLUNA and 1 $pLUNA.
6./ You now have one $yLUNA and 1 $pLUNA in your wallet. $yLUNA is the yield bearing asset and $pLUNA is the principal asset.
Why would you use this?
Why would you use this?
7./ At the moment you always have to choose between staking a token or use it in a liquidity pool. Refracting the assets gives it much more utility. In the picture below (source: PRISM Litepaper) it's clearly visualised. 
8./ So a possibility is to stake both tokens, which will give you basically the same utility as one staked $LUNA. But what if you're not interested in either your governance rights or the yield?
9./ You can stake the assets which gives you the rights you're interested in and use the other asset in a liquidity pool. You're now staking for your own interested and earn AMM fees and LP incentives at the same time. This creates much more capital efficiency.
10./ I hope you now understand the basics of @prism_protocol. I know there are a lot much more advanced use cases. I used $LUNA in this example but I'm aware tokens like $MINE are also very interesting to use here.
11./ Imo the best communities are educated communities so I hope this helps to achieve that. If you've any questions about PRISM or on one of the other upcoming projects, please let me know. If I think the answer to your question will help the community, I'll dive into it.
12./ So, what's your opinion about @prism_protocol and what else do you want to know?
Let me know below 👇
Let me know below 👇
• • •
Missing some Tweet in this thread? You can try to
force a refresh
