Splitting ("refracting") your #LUNA into #yLUNA and #pLUNA can currently earn you the highest attainable #LUNA yield in the @terra_money ecosystem π
1/ First step: Refract your #LUNA (see above). You now own an identical amount of #yLUNA and #pLUNA.
These tokens can always be merged back together to form a full #LUNA (well, #cLUNA, which has to unbond back to #LUNA for 21-24 days, like #bLUNA - but you get the point!)
2/ #yLUNA is #LUNA's yield component. Therefore, it can be staked, just like regular #LUNA. You can attain the "normal" staking yield in @prism_protocol's "stake" tab.
#Airdrops are automatically claimed by the protocol, further simplyfing your UX.
Then forget about "normal" staking and #welcome to the #PRISM#farming#event, where lockup periods don't exist and the #APR is currently at a staggering 48 % (= 60 % APY with weekly compunding)!
Here's why everybody should be buying $pLUNA on @prism_protocol right nowπ
A short π§΅, you won't regretπΈ
1/ Let's start with the basics: @prism_protocol let's you split ("refract") your $LUNA into two components:
- $yLUNA: representing the underlying $LUNA's yield (current APR 42 % on @prism_protocol) and
- $pLUNA: representing the principal
$pLUNA + $yLUNA = $LUNA
2/ The current ratio of these two components is heavily weighted towards $yLUNA, it representing around 87 % of $LUNA's price ($81), while $pLUNA is only capturing the remaining 13 % ($12). π€
We missed some more information on the capabilities of $pLUNA, though! No problem - that's what we are here for π€
A quick 𧡠on what you can currently (& soon!) do with $pLUNA!
1/ $pLUNA represents the principal token of $LUNA.
In theory, you should be able to do everything with $pLUNA, that can be done with $LUNA, except of course, earn staking yield (as that's what $pLUNA's counterpart $yLUNA is for!)
2/ Since @prism_protocol just recently launched, in practice things are looking a bit different though.
Naturally, you can #hodl your $pLUNA. Besides that, you can...
1/ @prism_protocol's innovative approach of allowing users to split ("refract") their #LUNA tokens into #pLUNA and #yLUNA lies at the core of the protocol.
For this service, a portion of yield derived through the protocol goes towards #PRISM stakers, i.e. #xPRISM#hodlers.
2/ While all of the juicy details can be found @ prismprotocol.notion.site, the gist of it is as follows:
By holding #PRISM and staking it for the auto-compunding #xPRISM token, you effectively become a shareholder of @prism_protocol's income stream.
#yLUNA will fail without a strong case for #pLUNA.
A 𧡠on the symbiotic relationship between these tokens.
1/ While as #pLUNADAO we are focusing on creating value and use cases for #pLUNA, we believe these tokens to have a "symbiotic" relationship. Neither can thrive, without the other succeeding as well.