Prisma mkUSDPrice

(MKUSD)

Prisma Finance is a decentralized borrowing protocol operating on the Ethereum blockchain. Its primary function is to allow users to mint a stablecoin known as mkUSD. This stablecoin is designed to be fully over-collateralized by liquid staking tokens, which are digital assets representing staked ether that still allow for liquidity. Common collateral types used within the protocol include liquid staking derivatives such as wrapped staked ether and other similar liquid representations of staked assets. The core mechanism of mkUSD involves users depositing their liquid staking tokens into the protocol to serve as collateral. Once the collateral is secured, users can mint mkUSD against those assets. Because the underlying collateral consists of staking tokens, the assets naturally accrue staking rewards over time. One unique feature of the Prisma protocol is its ability to use these rewards to help manage the debt associated with the minted stablecoins. The system is designed to be non-custodial, immutable, and censorship-resistant, adhering to the fundamental principles of decentralized finance. To maintain the stability and peg of mkUSD, Prisma Finance utilizes several internal mechanisms. These include a stability pool, which acts as a primary source of liquidity to facilitate liquidations and ensure the system remains solvent. There is also a redemption mechanism that allows users to exchange mkUSD for the underlying collateral at face value, which helps keep the stablecoin close to its intended value during periods of market fluctuations. Governance of the protocol is handled by the Prisma DAO. Participants in the decentralized autonomous organization use a native governance token to vote on various protocol parameters. This includes deciding on risk factors for different collateral types, setting protocol fees, and determining how incentives are distributed across the ecosystem. The protocol uses a voting model where users lock their governance tokens to gain voting power, allowing them to influence the direction of the project and its incentive structures. Prisma Finance is integrated with other prominent decentralized finance platforms like Curve and Convex Finance. These integrations create a system where users can provide liquidity for mkUSD in external pools to earn additional rewards. By combining liquid staking rewards with decentralized borrowing and external yield opportunities, the project aims to maximize the capital efficiency of staked ether for its users. In summary, Prisma mkUSD serves as a decentralized, collateral-backed stablecoin that leverages the growth of the liquid staking ecosystem to provide utility and stability within the Web3 landscape. Learn more

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