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.
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:
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...
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.
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.
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?
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. Image
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 👇

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More from @wolf_of_defi

30 Sep
1./ Now Col-5 has launched it's time to look forward. Let me take you straight to September 2022.

It's been a rough year. All the centralised stable coins suffered from the actions of the regulators, but their was one stable coin they couldn't get their hands on: $UST!
2./ Because of this, combined with the ongoing mainstream adoption of crypto currencies $UST now has a marketcap of more than $USDC, $USDT and $UST combined one year ago. Of course this means $LUNA went parabolic and now is the most wanted asset around
3./ The few other stable coins that are still being used are mostly deposited into @orion_money where also the users of other chains receive an APY of around 20% because @anchor_protocol keeps delivering, helped by @neptune_finance.
Read 19 tweets
27 Sep
1./ Just imagine a collaboration between @prism_protocol and @ApolloDAO. All mAssets, $LUNA, $ANC, $MIR, $MINE and way more tokens split into yield bearing tokens and principal tokens, all pooled against $PRISM and made available in auto compounding vaults on @ApolloDAO
2./ The only thing you have to do is deposit $UST at @ApolloDAO and everything else will be taken care of behind the scenes. This would be so user friendly and create so much value for $PRISM at the same time...
3./ Keeping in mind that they're also planning to integrate other cross chain assets like $SOL, $ATOM and $ETH, @prism_protocol is going to attract an unbelievable amount of value. It's literally a #BlackHole.
Read 4 tweets
23 Sep
1./ What if all stable coins on #Ethereum will be converted into $UST? Is that bullish? What would this mean for $LUNA?

I think this is possible. The only thing we need is a collaboration between @orion_money and @prism_protocol.

Let me explain what I'm thinking about:
2./ As we all know by now @prism_protocol is planning to split tokens into yield bearing tokens and principal tokens. Also stable coins. We also know @orion_money is giving the best APR's on $DAI, $USDT, $USDC, $FRAX and $BUSD by making use of @anchor_protocol.
3./ Not even to mention the APR's @orion_money will provide when their token $ORION launches.

Behind the scenes those stables are converted to $UST to receive this #APR. But what if we let @prism_protocol join the party?
Read 9 tweets
17 Sep
1./ I think everyone has been in doubt at least once whether they should provide liquidity or stake their precious $LUNA. But what if you can do both?

Let's talk about @prism_protocol again.
2./ As you should know by know at @prism_protocol you can split your $LUNA into $yLUNA, the yield bearing token, and $pLuna, the principal token.

Staking $yLuna at Prism gives you all the airdrops and staking rewards you'd have had when staking your standard $LUNA token.
3./ Great. So let's stake $yLUNA. Now we've $pLUNA left. What can we do?

The most easy thing to do is provide liquidity in the $pLUNA - $PRISM pool. You'll receive liquidity incentives and AMM fees as a result.
Read 8 tweets
14 Sep
1./ "When best of two worlds merge, the power won't be accumulated but it will be multiplied"

Columbus-5 will connect Terra to IBC. What this is gonna do is beyond imagination.

A quick thread:
2./ Once the Columbus-5 upgrade is finalised, $UST will be the first stable coin on @osmosiszone. Till now it still isn't possible to pool your assets against a stable coin. This means when you just want to have $Atom or $Osmo you need to have another volatile asset to pool.
3./ A stablecoin to pool against will give a lot more opportunities than there are now. Because of this, the demand for $UST will explode. We all know what that means.
Read 9 tweets
13 Sep

1./ This project is going to be a killer. Leverage long without liquidation risk? Check my previous tweet about this:

But this is just the beginning. Let's talk about the $Prism token:
2./ Like many tokens, the $Prism token will be used for governance. Also, once staked, users will receive fees earned by the protocol. But this isn't the amazing part. If you love @THORChain, you'll fall in love with $Prism instantly.
3./ At @prism_protocol you can deposit your $Luna and split this in $yLuna and $pLuna. Once you did this, you deposit those tokens in liquidity pools so people can trade them. And every liquidity pool has as base asset... $Prism. Amazing!
Read 8 tweets

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