Sep 01, 2023 Frank Stewskid
Prisma Finance is Live on Ethereum Mainnet
The world of decentralized finance (DeFi) continues to evolve with Prisma Finance announcing its successful deployment on the Ethereum mainnet. This breakthrough aims to amplify the potential of liquid staking tokens (LSTs), offering users a novel way to maximize their assets.
1/ We are thrilled to announce the successful deployment of Prisma Finance on the Ethereum Mainnet!
— Prisma Finance (@PrismaFi) August 31, 2023
Starting Friday 9am UTC, you can dive into the protocol via the Prisma app at https://t.co/tbZ9AP0PSB
Full announcement: https://t.co/A7fjj8yFD6
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Harnessing the Power of Liquid Staking Tokens
Liquid staking represents a pivotal evolution in the DeFi space. It allows users to stake their assets and receive liquid tokens in return, which can then be utilized in various DeFi protocols. Prisma Finance endeavors to further this innovation by allowing users to harness the full potential of their LSTs.
Starting this Friday at 9am UTC, enthusiasts can access the Prisma Finance protocol at prismafinance.com. The platform promises to unlock new avenues for LSTs, setting the stage for a more flexible and lucrative DeFi ecosystem.
What to Expect During the Initial Phase
As with any groundbreaking technology, Prisma Finance is taking a methodical approach to its launch. They are ensuring a smooth and secure user experience through a guarded launch phase. Here's what users can anticipate:
• Debt Caps: Prisma Finance has set initial debt caps on each collateral type. These will be progressively increased over time, ensuring system stability.
• Interest Rates: To foster early participation, interest rates have been set to 0%.
• Token Emissions: Initially, token emissions are disabled, with adjustments anticipated as the platform matures.
Supported Assets at Launch
A diverse range of assets is supported at the Prisma Finance launch:
• wstETH (Lido)
• rETH (Rocket Pool)
• sfrxETH (FRAX)
• cbETH (Coinbase)
Each collateral type has a predefined mintable amount, with wstETH, rETH, and sfrxETH capped at $6M and cbETH at $2M. Users should stay alert for notifications regarding any changes to these caps.
Introduction to the PRISMA Token
Beyond the initial phase, Prisma Finance has plans to roll out the PRISMA token. This token extends the platform's capabilities:
• Users can lock their PRISMA tokens to receive vePRISMA.
• vePRISMA holders can participate in governance and amplify their PRISMA token rewards.
Benefits of vePRISMA
vePRISMA isn't just another token – it's a gateway to more advanced functionalities:
• LST protocols can use vePRISMA to boost demand for their tokens.
• Holders can vote for PRISMA rewards on their collaterals, optimizing yield opportunities.
• vePRISMA can be leveraged to enhance PRISMA rewards in various scenarios, such as stability pool staking, minting new mkUSD, or maintaining an active borrow with specific collaterals.
The Takeaway
Prisma Finance's launch heralds a new era in the world of decentralized finance. By tapping into the untapped potential of Liquid Staking Tokens, the platform is poised to redefine how users interact with and benefit from the DeFi ecosystem. As the landscape of digital finance evolves, Prisma Finance emerges as a beacon of innovation, promising a more flexible, user-centric, and rewarding experience for all. Whether you're a seasoned DeFi enthusiast or a newcomer eager to explore, Prisma Finance is a venture worth watching.
