Updated: PRISMA Coin crashed 70% at the time of writing this. 😀
I’m taking a look at Prisma who issued the token named, PRISMA by Prisma Finance which recently listed on HTX (previously known as Huobi).
To be frank, the homepage might looks a little confusing, but we will try to drill down bit by bit, let’s first off start by answering, what is PRIMSA?
What is PRISMA?
PRISMA is the native governance token(like UniSwap) of the Prisma Finance platform. The stated goal of PRISMA is to enable decentralized community governance over Prisma Finance’s future direction. Unlike some governance tokens, PRISMA is designed to provide utility beyond just voting rights.
PRISMA holders can also access various earning opportunities on the Prisma protocol. The PRISMA tokenomics distribute tokens as incentives to encourage active protocol use and long-term holding. Overall, PRISMA is positioned as a core component of Prisma Finance, intended to promote engagement and decentralization through governance and rewards.
Prisma Finance offers various ways for users to earn PRISMA tokens:
- Depositing LST in the Stability Pool: Users earn PRISMA for depositing in this protocol component.
- Minting mkUSD: Users can earn PRISMA for engaging with Prisma’s stablecoin.
- Maintaining Active Debt: Maintaining debt positions allows users to earn PRISMA.
- Staking Curve LP Tokens: Prisma rewards staking Curve LP tokens with PRISMA.
The different earning opportunities are designed to incentivize usage of the protocol’s features. This provides avenues for both new and experienced DeFi users to gain PRISMA tokens.
Tokenomics of PRISMA
| Parameter | Details |
|---|---|
| Total Supply | 300 million tokens |
| Emissions | Significant portion dedicated for incentives |
| Core Contributors | Allocated share for those behind the protocol |
| Early Supporters | Rewards for early believers and adopters |
| Prisma DAO Treasury | Ensuring the protocol’s future sustainability |
Incentive Distribution Schedule
| Feature | Description |
|---|---|
| Allocation Mechanism | Users assign lock weight to allocate PRISMA emissions. The distribution of emissions follows users’ lock weight allocations. |
| Lock Weight Points | Each user has a maximum of 10,000 lock weight points. To vote with full weight, all points must be allocated. |
| Vote Persistence | Votes stay in effect weekly unless changed or cleared on the PRISMA tab. |
| Vote Registration | In the first year, PRISMA emissions follow locked positions. Users must register lock weight to vote. |
| Voting Actions | Users can vote on four actions to earn PRISMA: |
| 1. Depositing to the Stability Pool | |
| 2. Minting new mkUSD (with specific collateral) | |
| 3. Maintaining an active debt (with specific collateral) | |
| 4. Staking Curve LP tokens |
mkUSD is the stablecoin that lets you tap into the liquidity of your staked tokens.
The decentralized Prisma Finance protocol allows minting a stablecoin called mkUSD using staked assets like wstETH and rETH as collateral.
Users deposit supported staked tokens into a vault smart contract. Normally these staked assets have withdrawal restrictions, but mkUSD unlocks their liquidity without unstaking.
The vault collateralizes the staked tokens and mints mkUSD stablecoins pegged 1:1 to the US Dollar. Users maintain control through non-custodial contracts. They can redeem staked assets anytime by returning mkUSD.
Collateral ratios are utilized to maintain the 1:1 dollar peg. If a vault’s ratio drops too low, it enters liquidation to cover debt. A Stability Pool funded by fees also backstops the system.
mkUSD supports multiple staked asset collaterals like wstETH, rETH, cbETH, and sfrxETH, each with specific parameters.
The minting process involves:
- Choosing a supported staked collateral
- Opening a vault for that asset
- Depositing collateral into the vault
- Minting mkUSD against the collateral
- Using the minted mkUSD while assets remain deposited
The currently supported collaterals include:
- wstETH (Lido Wrapped liquid staked Ether 2.0)
- cbETH (Coinbase Wrapped Staked ETH)
- rETH (Rocket Pool ETH)
- sfrxETH (Staked Frax Ether)
PRISMA Tokenomic
| Total Supply | 300 million tokens |
| Emissions | Large portion dedicated for incentives |
| Core Contributors | Tokens allocated to project leads |
| Early Supporters | Rewards for early adopters |
| Prisma DAO Treasury | Ensuring future sustainability |
Incentive Distribution Schedule for PRISMA Emissions
| Feature | Description |
|---|---|
| Allocation Mechanism | Users allocate lock weight to emission receivers proportional to their lock weight |
| Lock Weight Points | Each user has max 10,000 points. Full weight needs full allocation. |
| Vote Persistence | Votes remain unless changed or cleared on the PRISMA tab |
| Vote Registration | In Year 1, PRISMA emissions follow locked positions. Users register lock weight to vote. |
| Voting Actions | Users can vote on: <br>1. Depositing to the Stability Pool <br>2. Minting new mkUSD <br>3. Maintaining active debt <br>4. Staking Curve LP tokens |
Where Can You Buy PRISMA?
Currently you can purchase PRISMA at:
Uniswap
Curve Exchange
HTX (Formerly known as HuoBi)
DODO.
Website Link:
https://prismafinance.com/
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