PRISMA

What is Prisma Finance?

Prisma Finance (PRISMA) is an innovative decentralized finance (DeFi) protocol designed to capitalize on Ethereum's liquid staking tokens (LSTs). By utilizing these tokens, users can generate a stablecoin called mkUSD, which is fully backed by liquid staking assets. This stablecoin enjoys incentives on platforms like Curve and Convex Finance, fostering a financially efficient environment where users can earn various rewards alongside their Ethereum staking yields. Drawing from a codebase inspired by Liquity, Prisma ensures the solidity and decentralization of its stablecoin, offering adaptable collateral parameters. Governance over parameters, emissions, and protocol fees is entrusted to the Prisma DAO, further enhancing its decentralized nature.

Who Created Prisma Finance (PRISMA) ？

Prisma Finance (PRISMA) emerged from a collaborative endeavor spearheaded by prominent figures and organizations within the decentralized finance (DeFi) and cryptocurrency realms. Noteworthy backers and supporters include luminaries such as Michael Egorov, the visionary behind Curve Finance, C2tP, the driving force behind Convex Finance, as well as FRAX Finance, Conic Finance, Tetranode, Llama Airforce, and the founders of CoinGecko, among others. This diverse spectrum of support accentuates the communal ethos behind Prisma Finance's inception and underscores its profound potential to shape the DeFi landscape.

How Does Prisma Finance Work?

Prisma Finance (PRISMA) is a decentralized finance (DeFi) protocol that harnesses the power of Ethereum's liquid staking tokens (LSTs) to enable users to create a stablecoin called mkUSD. This stablecoin is fully backed by liquid staking tokens and enjoys incentives on platforms like Curve and Convex Finance, allowing users to earn additional rewards alongside their Ethereum staking yields. Built on an immutable codebase inspired by Liquity, Prisma ensures the robustness and decentralization of its stablecoin while offering flexible collateral parameters. The Prisma DAO oversees parameters, emissions, and protocol fees, ensuring community governance. Key functionalities of Prisma include a decentralized borrowing protocol for minting mkUSD, a Stability Pool secured by mkUSD and borrower guarantees, non-custodial and immutable operation, capital-efficient borrowing with multiple collateral types, incentives for LST issuers, and a vote-locking mechanism for PRISMA holders. Through these features, Prisma Finance aims to provide users with a decentralized platform to maximize their Ethereum liquid staking tokens while engaging in various DeFi activities within the ecosystem.

Tokenomics

Token Utility

The PRISMA token functions as the governance cornerstone within the Prisma Finance ecosystem, offering multifaceted utility to its holders. Key aspects of its utility comprise governance privileges, where token holders can lock their tokens to gain voting weight for up to 52 weeks, empowering them to partake in protocol decisions. Additionally, PRISMA tokens are rewarded to users engaging in diverse protocol activities, including contributing to the Stability Pool, minting mkUSD, maintaining an active mkUSD debt, and staking Curve LP tokens. A substantial portion of PRISMA tokens is earmarked for emissions, allocated by the Prisma DAO to incentivize specific actions and liquidity provision in pools. Furthermore, PRISMA enables users to mint the native overcollateralized stablecoin, mkUSD, against listed liquid staking tokens, fostering capital efficiency. The token also drives rewards for users through incentivized mkUSD on Curve and Convex Finance, augmenting Ethereum staking rewards. Notably, PRISMA's emission schedule, outlined with a front-loaded high emission period followed by gradually decreasing weekly emissions, aims to incentivize early adoption and active participation in governance. This comprehensive utility framework serves to align incentives across users, contributors, and governance participants, nurturing a robust and decentralized ecosystem for Prisma Finance.

Token Distribution

The Prisma Finance (PRISMA) token distribution is structured as follows:

• Total Supply: The maximum supply of PRISMA tokens is 300 million.
• Prisma Emission: 62% of the total supply, which amounts to 186,000,000 PRISMA, is allocated towards emissions. These emissions are directed by the Prisma DAO to incentivize certain actions within the Prisma Protocol and can also be used to incentivize liquidity in liquidity pools.
• Core Contributors: 20% of the total supply, or 60,000,000 PRISMA, is allocated to Core Contributors. These tokens will be unlocked linearly over 12 months starting from the Genesis event.
• Early Supporters: 10% of the total supply, equating to 30,000,000 PRISMA, is allocated to Early Supporters who assisted in bootstrapping costs associated with the initial development of the Prisma Protocol. These tokens will also be unlocked linearly over 12 months starting from the Genesis event.
• Prisma DAO Treasury: 5% of the total supply, or 15,000,000 PRISMA, is held in the Prisma DAO Treasury.
• VeCRV Voters and Prisma Point Holders: 3% of the total supply, which is 9,000,000 PRISMA, is distributed towards veCRV voters and Prisma Point holders.

The distribution strategy for PRISMA tokens is designed to support the protocol's growth and development, incentivize participation and contribution within the ecosystem, and ensure a decentralized governance structure through the Prisma DAO.