Setting PRISMA apart

It’s LSTfi season, dozens of protocols are competing for what has now become the largest DeFi category topping almost $18b in cumulative TVL according to DeFiLlama. LSTs are here to stay, there’s no doubt about it.While conceptualizing Prisma Finance we designed several mechanisms that we believe would help unlock the full potential of Ethereum liquid staking tokens

Raising from amazing backers like Curve and Convex involved answering questions about how Prisma would set itself apart. Many newly joined community members are equally wondering how Prisma is different from the others: The answers are here


Rather than focusing solely on stETH and its market-leading position, Prisma will onboard five different LSTs from Rocket Pool, Coinbase, Binance and FRAX as well as Lido.

The goal is to level the playing field for LST providers and offer an excellent value proposition to those liquid staked tokens that may not be supported as well as others across the DeFi ecosystem.

Prisma has one shared stability pool but still allows its users to have independent borrows from different collaterals.In addition to our own due diligence, an independent team of researchers will assess each launch collateral, their level of decentralization, their fee structure and will suggest a cap for each of them.


PRISMA governance system allows its users to lock their token to receive vePRISMA voting weight which varies based on lock length (from a week up to a year). Users can operate multiple locks with different lengths in parallel as well as freeze a lock to prevent it from decaying linearly. This means vePRISMA holders can choose to freeze their lock and avoid having to continuously relock it. Governance will have control over the protocol fees.

LST Wars

One of DeFi’s most beloved mechanisms is Curve gauges that allow stablecoin issuers to incentivize liquidity to a certain pool, which is often referred to as the Curve wars. vePrisma holders will be allowed to go even further by having the ability to incentivize certain actions across the protocol. This means LST providers can incentivize minting mkUSD with their own LST. The voting, however, isn’t limited to this sole action.

Voters can direct emissions:

  • towards minting with a certain collateral

  • to keep an active borrow with a certain collateral

  • to any LP tokens staker whether that may be on an mkUSD/3CRV Curve pool or any LP token from any other DEX that may be relevant to Prisma.


vePRISMA holders will have the ability to adjust parameters for each collateral from launch to best manage risk and incentives issued by the protocol. Governance can adjust mint and redemption fees, raise or lower interest rates on outstanding loans, maximum caps and add or remove collaterals.


vePRISMA holders will also benefit from a boost when completing actions that earn PRISMA (like minting mkUSD, maintaining an open loan, or providing liquidity on one of the incentivized pairs).Based on their voting weight (relative to the total voting weight), users will be granted a boost of up to 100% (or 2x) on their PRISMA rewards. It will be possible to delegate the boost to allow Convex and Convex-like protocols to aggregate it and sell it at a fee that they can set themselves.

As most LST issuers will have an interest in directing emissions towards actions such as minting with their own LST, a bribe layer will complement Prisma governance and its participants.


DeFi security is paramount for us. To tackle this subject in the most thorough manner, Prisma will undergo three audits from top firms in the coming weeks.

There is so much more to reveal about Prisma so keep an eye out on our socials below and for the upcoming release of our docs.

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