PRISM - Everything you need to know about PRISM Token

Terra can be seen as a quite unified ecosystem when all protocols built on Terra know how to leverage the Terra ecosystem as a whole and its core assets: LUNA, UST in particular. Prism is among these projects which optimizes capital efficiency in Terra by generating fascinating derivatives products and maximizing LUNA use cases.

What is Prism?

Prism is a derivatives protocol that enables users to mitigate the risks related to highly volatile prices and unstable yields in the crypto market. The protocol does so by splitting digital assets into 2 distinct components: the yield and the principal one. 

Prism is incubated by Terraform Labs and is expected to be a key building block in the Terra ecosystem. 

How does Prism work?

Currently, there are 2 ways users can benefit from their assets: stake to earn yields or unstake to benefit from the price movement. Users can only choose one of the 2 options: earn yield but sacrifice the liquidity of the assets, or vice versa.  

Though some protocols solve this problem by issuing interest-bearing tokens (for example staking UST in Anchor to receive aUST), Prism even takes it to the next level. Instead of 2, Prism allows users to own 3 types of assets at the same time to maximize the benefits from all positions.

When users stake their assets in Prism, they receive Collateral Tokens (CT). A collateral token will be split into Principle Tokens (PT) and Yield Tokens (YT). Therefore, users now own 3 assets (CT, PT, and YT) and 2 of which are liquid assets (PT and YT). 

While Principle Token (PT) provides users with the exposure to price movement, Yield Token (YT) provides them with the exposure to yield earning opportunities.

For example, LUNA will be the first asset to be used in Prism v 1.0:

• pLUNA will have use cases as if user own LUNA: Trading, lending & borrowing, and governance.
• yLUNA will have use cases as if users stake LUNA: Staking rewards and airdrops opportunities.

This is undoubtedly a breakthrough in the Terra ecosystem to maximize the use cases of any assets and leverage capital efficiency. 

What is PRISM token?

PRISM is the native token of Prism which will capture value from the growth of the protocol. 

Detailed information about PRISM token

PRISM Key Metrics

• Token Name: Prism
• Ticker: PRISM
• Blockchain: Updating...
• Token Standard: Updating...
• Contract: Updating...
• Token type: Governance
• Total Supply: 1,000,000,000 PRISM
• Circulating Supply: Updating...

PRISM Token Allocation

• Team/Investors/Advisors/IDO (split TBD): 35%
• Community and Liquidity Incentives: 30%
• Prism Ecosystem Fund: 20%
• Airdrops (Genesis & Ongoing): 15%

PRISM Token Sales

Updating...

PRISM Release Schedule

Updating...

PRISM Token Use Cases

PRISM token use cases:

• Governance: vote on important matters of the protocol.
• Fees: earn fees generated by the protocol.

Principle token (PT) use cases:

• Stake PT to have the governance rights.
• Provide liquidity on the AMM and earn staking rewards, liquidity incentives, and AMM fees.
• Trade PT on the AMM.
• Use PT as the collateral to borrow or lend.

Yield token (YT) use cases:

• Stake YT in PRISM and earn staking rewards.
• Provide liquidity on the AMM and earn staking rewards, liquidity incentives, and AMM fees.
• Trade PT on the AMM.
• Use PT as the collateral to borrow or lend.

How to get PRISM token

Updating...

How to buy PRISM token

Updating...

How to store PRISM token

Updating...

Prism Roadmap

After the launch of Prism v1.0 with LUNA perpetual contract, the protocol planned many other upgrades:

• Introduce new collateral: 
  • PoS assets such as ETH, SOL, ATOM and DOT.
  • Native assets in Terra: aUST, mAssets, ANC, MIR, MINE and their respective LP tokens.
  • Assets of the upcoming protocol on Terra.
• Leverage exposure to Principle Tokens and Yield Token: by enabling borrowing, shorting, hedging,... 
• In the long term, Prism can even support traditional assets when they are moved on-chain.

Team, Investors, and Partners

Team

The team is anonymous but we just know that Prism is developed by a team including various experts in traditional finance. Therefore, they are confident to build effective derivatives markets on Terra with support from TerraForm Labs.

Investors

Partners

Prism has established a partnership with Pylon Protocol and Sandclock to support the protocol in the building process. 

Similar Projects

• Tranchess (CHESS): Tranchess is an asset management protocol, offering users various risk-return products corresponding to their appetites via three types of tokens.
• Sunder (SUNDER): Sunder is the framework that enables the utility of Governance tokens to be mutually inclusive, allowing players to maintain exposure while earning interests without compromising voting rights.

Is Prism (PRISM) a good investment?

I hope that from all the mentioned information, you can get a basic understanding of Prism to start researching more about this project. It is hard to tell firmly whether any project/ token is a good investment or not. However, I will provide you with some key highlights of Prism so that you can do your own research and make your own investment decisions.

Terra is an ecosystem that has sustainable growth. The TVL of Terra is still increasing impressively to reach $12.72B despite the current hard time in the market. 

Prism has a fascinating model that if it is live, it will be a huge driver for the further growth of Terra as users can maximize the capital efficiency of all assets in the Terra ecosystem.  

Prism is built by a group of experts in traditional finance to apply the traditional derivatives model in the blockchain space effectively. Moreover, this project is incubated by Terraform Labs so we can expect that Prism will be a key player in the Terra ecosystem.

Learn more:  What is GuildFi (GF)? All about GF Token