1/22 With all the hype around the upcoming launch of @prism_protocol, let's take a look at what $PRISM is all about!
Long ๐งต
Long ๐งต
2/22 What is Prism?
@prism_protocol is a #protocol on @terra_money that offers leveraged exposure with no risks and liquid staking on steroids.
@prism_protocol is a #protocol on @terra_money that offers leveraged exposure with no risks and liquid staking on steroids.
3/22 Prism allows users to split their $LUNA (Yield Bearing Assets) into two parts, principal token ($PT) and yield token ($YT).
$PT allows the user to speculate on the price action of the token whereas $YT allows the user to speculate on the staking reward.
$PT allows the user to speculate on the price action of the token whereas $YT allows the user to speculate on the staking reward.
4/22 These contracts, $PT & $YT, are perpetual upon launch but there will be fixed time-intervals contracts Prism v2 (1, 3, 6, 9 and 12 months).
This enables greater capital efficiency and functionality, letting users raise capital against their assets without liquidation risks.
This enables greater capital efficiency and functionality, letting users raise capital against their assets without liquidation risks.
5/22 When $PT expires, they can be swapped to $CT (without YT) and exchanged for the underlying collateral, or mint a new $PT and $YT with a different maturity.
When $YT expiries, they have 0 value because it has paid out all its yield for the period it was minted for.
When $YT expiries, they have 0 value because it has paid out all its yield for the period it was minted for.
6/22 Now let's look at what can be done with $LUNA on @prism_protocol.
When a user deposits their $LUNA into Prism, it will be refracted into $pLUNA and $yLUNA.
The main difference between $pLUNA and $yLUNA is...
When a user deposits their $LUNA into Prism, it will be refracted into $pLUNA and $yLUNA.
The main difference between $pLUNA and $yLUNA is...
7/22 When you stake $pLUNA on @prism_protocol, it allows users to exercise LUNA voting rights, while $yLUNA allows users to earn LUNA staking yield.
You can provide LP in pLUNA/yLUNA-PRISM pools to earn fees and incentives, or use them in money markets to borrow/lend against.
You can provide LP in pLUNA/yLUNA-PRISM pools to earn fees and incentives, or use them in money markets to borrow/lend against.
8/22 A user can burn $PT and $YT to receive $CT (collateral token).
$CT can then be used to redeem the underlying collateral - $LUNA.
Note that it will take 21 days for $LUNA withdrawals.
You can also swap $PT, $YT, and $CT for $LUNA on the AMM, with a slight discount.
$CT can then be used to redeem the underlying collateral - $LUNA.
Note that it will take 21 days for $LUNA withdrawals.
You can also swap $PT, $YT, and $CT for $LUNA on the AMM, with a slight discount.
9/22 There will be four phases launching on @prism_protocol
Prism Forge (25 Jan)
Prism Swap (30 Jan)
Prism Refract (4 Feb)
Prism Farm (9 Feb)
Prism Forge (25 Jan)
Prism Swap (30 Jan)
Prism Refract (4 Feb)
Prism Farm (9 Feb)
10/22 1. Prism Forge - 25 Jan launch
This will be the price discovery phase.
Upon launch, users can contribute $UST into the pool while being able to withdraw their full deposit at any time before 29 Jan.
This will be the price discovery phase.
Upon launch, users can contribute $UST into the pool while being able to withdraw their full deposit at any time before 29 Jan.
11/22 Prism Forge (Cont)
On the 29th, only one withdrawal can be made. The withdrawal amount decreases by 4.2% hourly.
The price of $PRISM is determined by the total $UST deposited into PRISM Forge / 70,000,000 $PRISM tokens.
On the 29th, only one withdrawal can be made. The withdrawal amount decreases by 4.2% hourly.
The price of $PRISM is determined by the total $UST deposited into PRISM Forge / 70,000,000 $PRISM tokens.
12/22 2. Prism Swap - 30 Jan launch
PRISM-UST pool will be created and all $PRISM from Phase 1 will be released in Phase 2.
Prism Swap (AMM/DEX) will launch and users will be able to buy $PRISM tokens on a #DEX for the first time.
PRISM-UST pool will be created and all $PRISM from Phase 1 will be released in Phase 2.
Prism Swap (AMM/DEX) will launch and users will be able to buy $PRISM tokens on a #DEX for the first time.
13/22 3. Prism Refract - 4 Feb launch
@prism_protocol will open its mainnet to users, allowing them to split their $LUNA into $pLUNA and $yLUNA.
Users can also stake $PRISM to receive $xPRISM, leave limit orders or trade tokens ($PRISM, $LUNA, $aUST, etc) on Prism Swap.
@prism_protocol will open its mainnet to users, allowing them to split their $LUNA into $pLUNA and $yLUNA.
Users can also stake $PRISM to receive $xPRISM, leave limit orders or trade tokens ($PRISM, $LUNA, $aUST, etc) on Prism Swap.
14/22 4. Prism Farm - 9 Feb launch
During this phase, 130 million $PRISM will be distributed linearly over one year.
The event will follow a similar format to other community farming events where #yield is swapped for protocol #tokens.
During this phase, 130 million $PRISM will be distributed linearly over one year.
The event will follow a similar format to other community farming events where #yield is swapped for protocol #tokens.
15/22 Prism Farm (Cont)
The key differences:
1. You can swap your $yLUNA yield for $PRISM.
2. $PRISM earned will be claimable 30 days later. $yLUNA can be removed at any time without any withdrawal fees.
3. There will be a live yield price as $PRISM will be trading on the DEX.
The key differences:
1. You can swap your $yLUNA yield for $PRISM.
2. $PRISM earned will be claimable 30 days later. $yLUNA can be removed at any time without any withdrawal fees.
3. There will be a live yield price as $PRISM will be trading on the DEX.
16/22 $PRISM utility
$PRISM can be staked to receive $xPRISM which is used to participate in governance.
$xPRISM can be used to borrow, lend out or provide #liquidity on Prism Swap.
$PRISM can be staked to receive $xPRISM which is used to participate in governance.
$xPRISM can be used to borrow, lend out or provide #liquidity on Prism Swap.
17/22 $PRISM utility (Cont)
1. Governance - $xPRISM holders will oversee important matters such as incentives distribution, etc.
2. Fees - $xPRISM holders will receive fees that the protocol charges. All fees will be converted to $PRISM on the AMM and added to the xPRISM pool.
1. Governance - $xPRISM holders will oversee important matters such as incentives distribution, etc.
2. Fees - $xPRISM holders will receive fees that the protocol charges. All fees will be converted to $PRISM on the AMM and added to the xPRISM pool.
18/22 $PRISM utility (Cont)
Validators will be required to pledge $xPRISM as collateral for $LUNA delegations.
@prism_protocol also offers slashing insurance when a validator suffers down time.
Their $xPRISM will be used as insurance for any slashed amount instead of $LUNA.
Validators will be required to pledge $xPRISM as collateral for $LUNA delegations.
@prism_protocol also offers slashing insurance when a validator suffers down time.
Their $xPRISM will be used as insurance for any slashed amount instead of $LUNA.
19/22 $PRISM Tokenomics
There will be a total supply of 1 billion $PRISM.
- 20% Prism Foundation
- 7% Prism Forge
- 13% Farming Event
- 30% Core Contributors & Service Providers
- 10% Strategic Partners, Advisors & Collaborators
- 20% Community Fund & Liquidity Incentives
There will be a total supply of 1 billion $PRISM.
- 20% Prism Foundation
- 7% Prism Forge
- 13% Farming Event
- 30% Core Contributors & Service Providers
- 10% Strategic Partners, Advisors & Collaborators
- 20% Community Fund & Liquidity Incentives
20/22 There's a 6 months cliff for Core Contributors & Strategic Partners, with 18 months linear vesting.
1 year linear vesting for the $yLUNA Farming Event.
4 year linear vesting for Community & Liquidity Incentives.
And a Multisig distribution to the Foundation on 30 Jan.
1 year linear vesting for the $yLUNA Farming Event.
4 year linear vesting for Community & Liquidity Incentives.
And a Multisig distribution to the Foundation on 30 Jan.
21/22 With a brand new set of derivatives, @prism_protocol is going to have a large impact on the #DeFi landscape.
Users will be able to decide between maximizing their exposure to $pLUNA, $yLUNA, or both.
Prism will eventually scale to include new assets - $ETH, $SOL, $DOT.
Users will be able to decide between maximizing their exposure to $pLUNA, $yLUNA, or both.
Prism will eventually scale to include new assets - $ETH, $SOL, $DOT.
22/22 For more information, you can also watch our latest video on @prism_protocol explained here!
Hope you guys enjoy the video!
Hope you guys enjoy the video!
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