Prisma is a decentralized borrowing protocol that allows users to mint a stablecoin, mkUSD, that is fully collateralized by liquid staking tokens.
In addition to the collateral, the loans are secured by a Stability Pool containing mkUSD and by fellow borrowers collectively acting as guarantors of last resort. Learn more about these mechanisms under liquidations.
Prisma as a protocol is non-custodial, immutable, and censorship-resistant. Learn more about the protocol here.
To create a new vault, earn, or vote on governance proposals, head over to the Prisma interface and connect a Web3 wallet. Be aware that each transaction on Ethereum costs Ether (ETH). For a more detailed walkthrough, check out our Help Guides.
If you're a developer interested in building on top of the Prisma Protocol, please refer to our extensive docs.
Prisma is a borrowing protocol. In practical terms, it is a collection of smart contracts that define a standard way to deposit collateral, mint mkUSD, and liquidate positions.
A vault is where you take out and maintain your loans against a specific collateral type.
For a more in-depth description, check out the concepts from the documentation.
Prisma offers a capital-efficient borrowing experience with:
- A minimum collateral ratio of
- Ability to deposit multiple collateral types
- Directly redeemable - mkUSD can be redeemed at face value for the underlying collateral, at any time
- Censorship resistant
Prisma is also attractive to LST issuers as vePRISMA holders are incentivized to mint mkUSD with their own LST, along with redirecting emissions to specific LSTs on Prisma.
Vote locking is a feature on Prisma where PRISMA is locked in return for vePRISMA. The longer the time period that PRISMA is locked for, the more vePRISMAs are received. The minimum locking period is 1 week and the maximum period is 52 weeks.
One of the major incentives of vote-locking PRISMA is the ability to boost your PRISMA emissions. This means that a vault with "max boost" earns PRISMA rewards at 2x the rate of a vault that is un-boosted.