Thread by @AgilePatryk

@prism_protocol intro
S01E01 - Core Feature of PRISM

Some folks have already written about Prism Protocol, most notably:

@danku_r -
@YieldLabs -

https://twitter.com/YieldLabs/status/1448413130481192971

@wolf_of_defi -

https://twitter.com/wolf_of_defi/status/1445101772704518144

@terranaut3 -

https://twitter.com/terranaut3/status/1441106279729012743

/1

This is just to say that I am embarking on what seems to be a beaten path... only to venture forth a little bit further.

Still, the series would not be complete without a few words of introduction on what the @prism_protocol will allow us to do.

/2

@prism_protocol will let us deposit @terra_money yield-bearing assets and will give us $cAssets as a deposit confirmation.

Next, it will allow us to refract (split) a $cAsset into:
- yield-bearing part = yield token (YT)
- principal part = principal token (PT)

/3

Example:

1. Deposit $LUNA into @prism_protocol
2. Get $cLUNA as deposit confirmation
3. Refract $cLUNA into $yLUNA and $pLUNA

$yLUNA = entitlement to all staking rewards and airdrops
$pLUNA = exposure to price action (changes) of $LUNA

/4

@prism_protocol will allow us to do various things with $yLUNA and $pLUNA, including:

- Stake $yLUNA to get the staking rewards and airdrops
- Stake $pLUNA to exercise voting rights
- Provide $pLUNA or $yLUNA as collateral to borrow against
- Use $pLUNA or $yLUNA in LP mining
/5

Above are just some rudimentary use cases - further exploration commencing in S01E05 and S01E06.

Full list of episodes:

https://twitter.com/AgilePatryk/status/1448951059402137611

/6-end