A Primer on Prisma Finance

Prisma Finance is building out a new protocol that focuses on the minting of a native stablecoin. This stable, $acUSD, will accept liquid staking derivatives of ETH as collateral.

June 21, 2023

LSDfi continues to be the hottest sector in DeFi. What if there was a stablecoin that capitalized on this?

@PrismaFi is a @LiquityProtocol fork that allows users to mint a LSD-collateralized stablecoin $acUSD. To produce a sustainable flywheel, Prisma will be joining the Curve Wars. It was only natural to create a stablecoin that builds on this established market value.

Governance

  • Incentivize minting of $acUSD

  • Change mint/borrow fees for collateral types

  • Incentivize any LP w/ PRISMA emissions

  • Change Protocol Parameters

Protocol Parameters

  • Stability Pool

  • Pool Characteristics

  • Protocol Fees

Collateral Types

At release, only a handful of collateral types will be accepted in order to mint $acUSD.

Prisma Collateral Types

Tokenomics

Prisma will be using a vote escrow model for their token.

Lock Period: 1 Week - 1 Year

Users may have various locks and freeze locks to prevent decay of voting power. This opens the way for bribes that will be available natively through the protocol.

Notable Supporters

Notable Investors

Conclusion

Tapping into a multi billion dollar market is brilliant and gives Prisma significant room for growth. There is no shortage of desire for staking yield and it’s expected that more stables will follow suit and accept LSDs for collateral.

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