February 15, 2024: MK + ULTRA $USD 🤯🌈
How Prisma Finance’s newest stablecoin has mesmerized the masses
Help us by sharing this thread on 𝕏!
MK + ULTRA!
Even more than tokenomics and architecture, Prisma Finance’s killer app may be the ability to drop trippy vids that infect our collective brains. I dunno… might be psyops?
In this case it’s in service of a new stablecoin $ULTRA, backed by LRTs. This offering differs from their original $mkUSD, which is backed by Ethereum liquid staking tokens/derivatives.
The feverish building and shipping from the Prisma team since launch has been impressive, but what may have gotten lost in the wider crypto community in the flip from bear to bull is that PRISMA has been highly profitable, a rarity for crypto.
It’s also been quite a moneymaker for users, if you know how to play it… (not financial advice, of course)
The $mkUSD launch, now about six months ago, successfully introduced a new contender into the field of decentralized stablecoins. The $mkUSD token has held up its peg very well.
Impressively, the stablecoin and its broader ecosystem saw almost no major turbulence after a major whale Sunset his position earlier this month.
The token has not seen a redemption in over two weeks. Some key metrics we’re keeping an eye on include looking to see if there will be inflows to replace the major whale exit. Another metric to watch is whether the team can reduce the collateral ratio users are holding to forestall redemptions, which sits at a weighty 300%.
Therefore one might ask, why not add LRTs into $mkUSD instead of creating a brand new $ULTRA stablecoin?
We imagine this is in fact the key reason… LRTs are the shiny new object, but too new to have any provenLindyness. We haven’t gotten to see the repercussions of what happens when they face hacks or other such issues that can fell new projects to self-immolate overnight. If LRTs collapse, we don’t want to be sitting in the blast radius.
Prisma also cites that restaking tokens have different fundamental properties than the original staking tokens, and they want to be able to make snap adjustments as needed.
Either way, we look forward to seeing the experiment play out in realtime. From a slight distance…
More on Liquid Restaking Tokens:
Some jealous onlookers have struggled… just how has Prisma so enraptured the crypto community. Some of its codebase was forked!!!!1!
In truth, the level of technological innovation Prisma has brought has been sadly underemphasized.
We also feel that one key difference is the effects of leaning into the broader Flywheel infrastructure, as opposed to occasional bouts of open antagonism.
Prisma has used its ability to wage the Curve Wars effectively to its advantage in scaling its wider tokenomics.
DeFi faces long odds building a new and improved financial system. Humans are ultimately social creatures. Whenever we figure out how to band together, we go much farther than when we go it alone.
Admittedly, the author is biased, being one of those dirty dogs who was lucky enough to invest into the project early. What should you do if you were sidelined and feeling FOMO?
As much as we like $PRISMA, consider also the meta-play of $CVX. Convex often trades like it’s a conjoined twin to $CRV, but it exerts power over a much wider ecosystem of projects that could flourish in a new altseason.
Whoops… this feels like it might get mistaken as financial advice or alfa, so we’d better slap up a paywall so the kiddos don’t get confused…