Prisma FinanceIntroducing PRISMA - The Prisma DAO governance token
Since its inception, we committed towards building a protocol that belongs to its community, a DAO that would serve as responsible stewards of the Prisma Protocol. We’re excited to introduce the PRISMA governance token, ensuring community ownership and decentralized decision-making to guide Prisma towards the future. Starting next week on November 2nd, the future of Prisma belongs to the DAO community.PRISMA DistributionPRISMA will have a max supply of 300 million, and will be distributed as ...
Prisma FinanceImportant Vault Updates
Prisma Finance launched at the tail end of August, 2023, enabling holders of various types of LST collateral to mint mkUSD against their tokens. The DAO launched a month later with an innovative new veToken model. This multi-collateral system was an advance on the codebase Prisma uses; later Prisma unveiled the ability to have multiple tranches for each collateral and launched PrismaLRT and the stablecoin $ULTRA for liquid restaking tokens. As a latest piece, Prisma will soon be launching a t...
Prisma FinanceRewards and Fees structure of Leading Liquid Staked ETH issuers
Liquid staking has emerged as a popular solution for Ethereum holders, offering the opportunity to stake their ETH while maintaining liquidity. We’ll explore several prominent liquid staked ETH issuers and provide insights into their respective fee structures. Different platforms will be covered, each contributing to the growth of liquid staking in the Ethereum ecosystem.Lido: Lido allows users to stake their ETH and receive stETH tokens in return. These stETH tokens represent users staked ET...
The end game for liquid staking tokens. A non-custodial and decentralized Ethereum LST-backed stablecoin.
We are thrilled to announce a groundbreaking development that marks another milestone in the evolution of Prisma Finance. Following an on-chain vote, the community has spoken, and we're excited to unveil the implementation of a new proposal that will shape the future of Prisma.
Protocol Fees Redistribution to vePRISMA Holders
In response to the growing success and increasing TVL, reaching an all-time high of more than $400 million, Prisma has enacted a significant change in its structure and revenue sharing. Effective from the next epoch (Thursday 21st), protocol fees will be distributed to vePRISMA holders, aligning incentives and fostering greater community participation.
Motivation Behind the Decision
The decision to distribute protocol fees comes after a bit more than a month since the launch of Prisma's DAO and three months live on Ethereum. With an annualized fee estimate of $48 million, the true figure, excluding PRISMA penalty fees, is expected to be around $10 million. This includes $6 million in interest rate fees and $4 million in mint fees, translating to approximately $200,000 per week.
Prisma has emerged as the third-largest Collateralized Debt Position (CDP) protocol, trailing only MakerDAO and Liquity. The decision reflects the platform's commitment to sustainable growth and community involvement.
Key Features of the Protocol Fee Redistribution Proposal
100k mkUSD weekly: Protocol fees from the FeeReceiver will be distributed weekly, up to 100k mkUSD.
LST Fees Distribution: Any LST fees will be sold for mkUSD, contributing to the overall distribution.
Liquidity Pool Enhancement: A portion of the fees, 25k mkUSD paired with $25k PRISMA, will be added to the mkUSD/PRISMA pool weekly, owned by the DAO in perpetuity.
Remaining PRISMA: PRISMA remaining in the FeeReceiver will be retained for the time being, serving as a potential backstop or a future mechanism for incentivization, subject to DAO approval.
Adjustable Cap: The weekly 100k mkUSD distribution cap is adjustable based on the protocol's growth and revenue performance. The DAO retains the flexibility to adapt to changing circumstances.
Benefits of the Protocol Fee Redistribution
No Increase in PRISMA Emissions: The redistribution strategy avoids increasing emissions of PRISMA by excluding $PRSIMA penalty fees.
VePRISMA Holder Incentivization: By distributing fees to vePRISMA holders, the protocol ensures that those who commit to locking PRISMA for a year are appropriately incentivized.
Attractive Yield for Locked PRISMA: With PRISMA locked for a year yielding approximately 38% APR at current prices, vePRISMA holders can enjoy an attractive return on their commitment.
Future Flexibility: The retained PRISMA in the FeeReceiver provides flexibility for future use.
We appreciate the active participation of our community members in shaping the future of Prisma, through proposals, discussion, and active communication.
As we continue to grow and evolve, the Prisma DAO remains committed to transparency, decentralization, and the empowerment of our community.
Thank you for being part of the Prisma journey, it’s only the beginning!
We are thrilled to announce a groundbreaking development that marks another milestone in the evolution of Prisma Finance. Following an on-chain vote, the community has spoken, and we're excited to unveil the implementation of a new proposal that will shape the future of Prisma.
Protocol Fees Redistribution to vePRISMA Holders
In response to the growing success and increasing TVL, reaching an all-time high of more than $400 million, Prisma has enacted a significant change in its structure and revenue sharing. Effective from the next epoch (Thursday 21st), protocol fees will be distributed to vePRISMA holders, aligning incentives and fostering greater community participation.
Motivation Behind the Decision
The decision to distribute protocol fees comes after a bit more than a month since the launch of Prisma's DAO and three months live on Ethereum. With an annualized fee estimate of $48 million, the true figure, excluding PRISMA penalty fees, is expected to be around $10 million. This includes $6 million in interest rate fees and $4 million in mint fees, translating to approximately $200,000 per week.
Prisma has emerged as the third-largest Collateralized Debt Position (CDP) protocol, trailing only MakerDAO and Liquity. The decision reflects the platform's commitment to sustainable growth and community involvement.
Key Features of the Protocol Fee Redistribution Proposal
100k mkUSD weekly: Protocol fees from the FeeReceiver will be distributed weekly, up to 100k mkUSD.
LST Fees Distribution: Any LST fees will be sold for mkUSD, contributing to the overall distribution.
Liquidity Pool Enhancement: A portion of the fees, 25k mkUSD paired with $25k PRISMA, will be added to the mkUSD/PRISMA pool weekly, owned by the DAO in perpetuity.
Remaining PRISMA: PRISMA remaining in the FeeReceiver will be retained for the time being, serving as a potential backstop or a future mechanism for incentivization, subject to DAO approval.
Adjustable Cap: The weekly 100k mkUSD distribution cap is adjustable based on the protocol's growth and revenue performance. The DAO retains the flexibility to adapt to changing circumstances.
Benefits of the Protocol Fee Redistribution
No Increase in PRISMA Emissions: The redistribution strategy avoids increasing emissions of PRISMA by excluding $PRSIMA penalty fees.
VePRISMA Holder Incentivization: By distributing fees to vePRISMA holders, the protocol ensures that those who commit to locking PRISMA for a year are appropriately incentivized.
Attractive Yield for Locked PRISMA: With PRISMA locked for a year yielding approximately 38% APR at current prices, vePRISMA holders can enjoy an attractive return on their commitment.
Future Flexibility: The retained PRISMA in the FeeReceiver provides flexibility for future use.
We appreciate the active participation of our community members in shaping the future of Prisma, through proposals, discussion, and active communication.
As we continue to grow and evolve, the Prisma DAO remains committed to transparency, decentralization, and the empowerment of our community.
Thank you for being part of the Prisma journey, it’s only the beginning!
Prisma FinanceIntroducing PRISMA - The Prisma DAO governance token
Since its inception, we committed towards building a protocol that belongs to its community, a DAO that would serve as responsible stewards of the Prisma Protocol. We’re excited to introduce the PRISMA governance token, ensuring community ownership and decentralized decision-making to guide Prisma towards the future. Starting next week on November 2nd, the future of Prisma belongs to the DAO community.PRISMA DistributionPRISMA will have a max supply of 300 million, and will be distributed as ...
Prisma FinanceImportant Vault Updates
Prisma Finance launched at the tail end of August, 2023, enabling holders of various types of LST collateral to mint mkUSD against their tokens. The DAO launched a month later with an innovative new veToken model. This multi-collateral system was an advance on the codebase Prisma uses; later Prisma unveiled the ability to have multiple tranches for each collateral and launched PrismaLRT and the stablecoin $ULTRA for liquid restaking tokens. As a latest piece, Prisma will soon be launching a t...
Prisma FinanceRewards and Fees structure of Leading Liquid Staked ETH issuers
Liquid staking has emerged as a popular solution for Ethereum holders, offering the opportunity to stake their ETH while maintaining liquidity. We’ll explore several prominent liquid staked ETH issuers and provide insights into their respective fee structures. Different platforms will be covered, each contributing to the growth of liquid staking in the Ethereum ecosystem.Lido: Lido allows users to stake their ETH and receive stETH tokens in return. These stETH tokens represent users staked ET...
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The end game for liquid staking tokens. A non-custodial and decentralized Ethereum LST-backed stablecoin.
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