In this episode of The Edge Podcast which took place on March 8, 2024, DeFi Dad Nomatic and Richard discuss LRTs, Prisma LRTs, yield on Prisma, and more. Read our notes below to learn more.
Background
- DeFi Dad (Host) – Host of Edge Podcast
- Nomatic (Host) – Co-Host of Edge Podcast
- Richard (Guest) – Head of Business Development
- Prisma – a CDP-backed stablecoin for LST and LRTs
Prisma vs PrismaLRT
- Richard says that PrismaLRT is a new DeFi product by Prisma Finance that allows borrowing against LRTs. Users can deposit their liquid restaking tokens into Prisma to mint $ULTRA stablecoin and leverage up with more LRTs or deposit into pools within the system.
- He adds that the difference between Prisma LRT and LST lies in the underlying token that backs the stablecoin as collateral.
- Richard says that Prisma LRT was launched after meeting specific conditions like LRT liquidity on-chain and having price oracles in place.
- He adds that PrismaLRT initially supports ether.fi, and will accept Kelp DAO, Renzo, and Swell’s LRTs. New LRTs are being considered through government proposals by various teams. Parameters such as depth cap and minimum collateral ratio differ from the original LST protocol.
Incentives, Stability Pool, and LPs for $ULTRA
- Richard says that within 24 hours of launch, over $11 million was already invested in PrismaLRT, indicating strong market demand.
- He adds that Stability Pool offers single-sided deposits of $ULTRA with no impermanent loss, providing a safe option compared to other pairings. APR in the stability pool currently ranges from 47% to 95%, with additional rewards possible through liquidations.
Expanding to Layer-2s and tokenized Stability Pool deposits
- Richard says that Prisma plans to expand to other chains beyond Ethereum mainnet. They are introducing a tokenized Stability Pool deposit with $mkUSD side tokens for enhanced capital efficiency.
- Richard says that users locking $PRISMA receive weekly airdrops of stablecoins as rewards. Prisma aims to push fees into the DAO for user benefits and product sustainability.
Prisma and PrismaLRT governed by $PRISMA
- Richard says that there isn’t going to be a new governance token to govern PrismaLRT.
- He adds that users can earn significant yield on $ULTRA on Prisma and they are talking with other protocols so that the yield can be boosted more.
Check out these important links
- Watch the YouTube Video
- Follow DeFi Dad on Twitter
- Follow Nomatic on Twitter
- Follow Richard on Twitter
- Follow Prisma on Twitter
Show Information
- Medium: YouTube (Video)
- Show: The Edge Podcast
- Show Title: PrismaLRT: The Leverage dApp for LRTs
- Show Date: March 8, 2024