Hoo Research | Coin Wave Production — PRISM | by Hoo Research

3 min readMay 16, 2022

Hoo Research | Coin Wave Production — PRISM

PRISM allows users to obtain liquidity by selling the future earnings corresponding to their holding assets within a selected period of time without facing any risk of principal liquidation.

Fix your staking yield for guaranteed returns

In the time period of your choice, it can easily swap your variable staking earnings for fixed earnings.

Leverage without liquidation risk

Without worrying about liquidation or funding to make leverage exposure to the yield or principal of the asset.

Managing currency and price risk

Immediately convert your future earnings into any Terra stable coin to protect against future price fluctuations.

The most composable liquid staking solution

To convert your assets into freely tradable and pledged/unpledged principal tokens and income tokens.

Functions:

Refract：Users will be able to “split”, “merge” or “redeem” their assets.

Stake: Users can stake yLUNA and receive all LUNA staking rewards and airdrops claimed by Asset Vault.

Swap: Users will enter the assets they want to swap and the assets they want to receive.

Pools: Ensure market depth and liquidity of various assets.

Govern: Users can pledge PRISM here to the xPRISM pool and receive xPRISM tokens in return.

Components:

AMM: It’s an important function to provide trading PT and YT and provide liquidity, and obtain earnings from it.

PT: Using CT minted subject tokens and it can exercise the proxy governance rights on the underlying asset and vote on governance proposals.

YT: Using CT minted revenue tokens and it can obtain stable staking rewards on the underlying assets, including airdrop, etc..

CT: A security token generated when yielding assets are submitted to the Prism repository and it can be exchanged at any time by an equal combination of PT and YT. CT holders can mint PT and YT, or quickly converted into collateral assets through AMM transactions.

Mechanism:

Firstly to put LUNA as collateral and split it into pLUNA and yLUNA.

pLUNA can serve as the liquidity provider of the AMM liquidity pool, and holders can obtain liquidity incentives and AMM fee income.

yLUNA grants holders the right to permanently receive LUNA staking proceeds and project airdrop rewards, and allows for storage, liquidity supply, trading, burning and redemption.

The user decides to sell yLUNA and buy more pLUNA after a period of time, he can unlock yLUNA from the Prism contract and choose to sell, and use the earnings from the transaction to buy additional pLUNA, so that the user can obtain effects of leveraged LUNA without liquidation risk.