What is Prisma Finance:
Prisma Finance is a new LSTFi protocol that enables DeFi users to mint a fully collateralised non-custodial and decentralised dollar denominated stablecoin mkUSD using Ethereum liquid staking tokens (LSTs) as collateral. In its current form, Prisma accepts Lido’s wstETH, Coinbase’s cbETH, Rocketpool’s rETH and Frax Finance’s sfrxETH as collateral to mint mkUSD.
Their $PRISMA token distribution is launching soon. Keep reading to learn how to maximize your chances of qualifying!
Keep reading to learn 5 key factors that differentiates PRISMA from other staking protocols:
- Prisma Finance Had a Successful Launch:
Prisma Finance within the first 8 hours of launch reached the set debt cap for every deployed Prisma vault meaning the total amount of mintable mkUSD was maxed out by borrowers. The total value locked of Prisma Finance at the debt cap is standing at $38.87M.
- User Oriented Decentralized Token Governance:
The PRISMA token is primarily a governance token to decentralise the Prisma protocol over time allowing token holders to vote on governance proposals to collectively upgrade the Prisma protocol. In order to participate in protocol governance, PRISMA holders must lock their tokens in order to receive voting power. PRISMA's platform allows for Emission Voting, Emissions Boosting, and DAO Voting.
Users can learn more about governance at https://prismafinance.com.
- Unique Over-Collateralized Staking Model:
Prisma Finance is a Liquity inspired protocol where DeFi users can mint a decentralised stablecoin using Ethereum LSTs as collateral.
In order to mint mkUSD, users will deposit Prisma accepted collateral (wstETH, cbETH, rETH, sfrxETH) into a Prisma vault which will manage the collateral USD value and debt issued. Since mkUSD is an overcollateralised stablecoin, the minimum collateral ratio (MCR) is set at 120% before the LST loan is liquidated.
This overcollatorization provides a strong safety net for users
- Initial 0% Borrowing Interest Fee:
To celebrate PRISMA's launch the mkUSD borrowing interest rate is set at 0% for new users. In addition, a fixed minting fee applied one-time at the moment of borrowing set at a minimum value of 0.5% and maximum value of 5%. Additionally, fixed redemption fees are applied when users exchange their mkUSD for a collateral of their choice at face value.
This competitive fee structures helps PRISMA stand out from other popular staking platforms such as Lido and Rocket Pool.
- Upcoming $PRISMA Distribution for new registrants:
PRISMA has finally unveiled plans for their upcoming $PRISMA distribution. All new users are eligible to participate in the distribution at no cost. With 78% of the supply being allocated to users, $PRISMA is positioned for strong market performance.
If you haven't already, all users are invited to register to secure a spot in the upcoming distribution HERE.
Besides the $PRISMA token distribution, it does seem to offer some real tangible benefits for us stakers, such as always being one of the first people to test new features, getting some insider information about the project 👀, discounted services and some other things I haven't fully investigated yet.
Part of me is also disappointed as I was not able to get that much from the distribution – but in my opinion it is better than nothing so whatever – it is what it is.
Its really interesting to see how much the crypto space is growing, and i think the bear market has really hidden these things out of our view, and makes us think everything is dying.. sure prices are down but development is increasing, and adoption is crazy high.
Overall, PRISMA Finance has strategically positioned itself to dominate the liquid staking industry through a proven track record, Decentralized Token Governance, Over-Collateralized Staking Model, 0% user fees, and upcoming distribution.
Feel free to share your thoughts below on how you think PRISMA stacks up agaisnt existing staking platforms such as Lido, RocketPool, Frax, etc.
TLDR:
PRISMA is stacking up against existing staking platforms such as Lido, RocketPool, Frax, etc. and it is dominating the liquid staking industry through a proven track record, Decentralized Token Governance, Over-Collateralized Staking Model, 0% user fees, and upcoming distribution.
Additionally, all users are invited to register to secure a spot in their upcoming $PRISMA token distribution HERE.