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.

Given recent market developments, including Bitcoin reaching all-time highs, there is a significant potential for market euphoria. This led to increased demand for debt minting and subsequently put pressure on reserves and the peg for our stablecoins.

EigenLayer is an Ethereum protocol that introduced restaking, a new primitive in crypto-economic security. This primitive enables the rehypothecation of $ETH on the consensus layer, allowing users that stake $ETH to opt-in to EigenLayer smart contracts to restake their $ETH and extend crypto-economic security to additional applications on the network. EigenLayer's restaking mechanism aggregates and extends crypto-economic security, allowing stakers to validate new applications being built on top of Ethereum. EigenLayer's innovative approach integrates key management technology to handle withdrawal and validation keys separately in the staking process, which sets it apart from traditional staking protocols. EigenLayer aims to contribute to the decentralization of the Ethereum network by enabling both permissionless and permissioned paths for running a node. EigenLayer has gained significant TVL and support from institutional capital over the past months. Liquid Restaking Tokens (LRTs) are the liquid representation of restaking positions.

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.

Today, we are introducing some exciting new changes to Prisma with the launch of two new vaults for wstETH and sfrxETH in addition to some changes to the fees of the current vaults. By offering these new vaults, Prisma can meet the borrowing needs of both short-term and long-term borrowers while also helping the mkUSD peg. So let’s dive into how these new vaults can benefit you!

Prisma Finance, following the DAO vote, Prisma Finance will start using a small part of the funds from the fee receiver PRISMA DAO treasury to fund innovative projects backed by strong teams with creative ideas that focus on benefitting and growing the Prisma ecosystem.

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.

Prisma is excited to have both Convex and Yearn, two of the largest and leading liquid lockers, integrating vePRISMA to help optimize and expand opportunities for Prisma users. Similar to their role in the Curve ecosystem, these liquid lockers play a crucial role within the Prisma ecosystem by unlocking instant liquidity for PRISMA holders and optimizing yields on Prisma for vault owners and LP’s.

We’re excited to unveil the Prisma Retroactive Airdrop. As stated in our previous post introducing the PRISMA Governance Token, locked PRISMA tokens will be airdropped to Prisma Point Holders and to addresses who voted for Prisma to be whitelisted on Curve.