🟪What is PrismaLRT

A non-custodial and decentralized Ethereum LRT-backed stablecoin.

Introduction

Recent excitement in EigenLayer and restaking has seen a surge in the popularity of a new asset class called Liquid Restaking Tokens (LRTs). Empowered by EigenLayer, several new liquid restaking protocols have emerged providing access to additional yields from restaking.

To date, liquid restaking boasts an impressive TVL that surpasses $3 billion with several notable protocols like Ether.fi, Renzo, KelpDAO, and Swell building on top of EigenLayer.

However, LRTs are facing the same problems LSTs experienced when Prisma was being built: what do you do with your LRT once you have it?

Introducing $ULTRA, sound money backed by LRTs native to Prisma.

$ULTRA is a new stablecoin issued by PrismaLRT, a new borrowing protocol developed by Prisma focused on unlocking liquidity for Liquid Restaking Tokens (LRTs).

PrismaLRT is purpose-built with parameters and features tailored specifically to realize the full potential of LRTs. A new protocol that will be integrated within the Prisma UI allowing users to seamlessly borrow using their LSTs or LRTs. By minting $ULTRA with their LRT, depositors can retain all of the rewards, points, and upside from owning an LRT, and unlock their capital as ULTRA, a stablecoin that can help them capture additional opportunities and yield on Prisma or throughout DeFi.

How does ULTRA work?

PrismaLRT is available in the same dApp as Prisma. Users are able to choose which collateral view they want to access.

As a decentralized stablecoin on the Ethereum Mainnet, $ULTRA is minted by users (borrowers). As with all borrowing on Prisma, a user must supply collateral (at a specific collateral ratio) to be able to mint $ULTRA. Correspondingly, when a user repays a debt position (or is liquidated), PrismaLRT protocol burns that user’s $ULTRA. All the fees and interest accrued by minters of $ULTRA would be directly transferred to the Prisma FeeReceiver.

Price Oracle

PrismaLRT uses RedStone Oracles to provide price feeds for weETH, our first collateral added. We are planning to expand our collaboration by using them for our next collateral integrations as well.

More info can be found here: Documentation of RedStone Classc (Push) model utilized by PrismaLRT -https://docs.redstone.finance/docs/smart-contract-devs/get-started/redstone-classic