Recent excitement in EigenLayer and restaking has seen a surge in the popularity of a new asset class called Liquid Restaking Tokens (LRTs). Empowered by EigenLayer, several new Liquid Restaking Protocols have emerged providing access to additional yields from restaking.

To date, liquid restaking boasts an impressive TVL that surpasses $3 billion with several notable protocols like Ether.fi, Renzo, KelpDAO, and Swell building on top of EigenLayer.

However, LRTs are facing the same problems LSTs experienced when Prisma was being built: what do you do with your LRT once you have it?

Introducing $ULTRA

$ULTRA is a new stablecoin issued by PrismaLRT, a new borrowing protocol developed by Prisma focused on unlocking liquidity for Liquid Restaking Tokens (LRTs).

PrismaLRT is purpose-built with parameters and features tailored specifically to realize the full potential of LRTs. A new protocol that will be integrated within the Prisma UI allowing users to seamlessly borrow using their LSTs or LRTs.

Given that LRTs are an exciting and new developing asset, the development of a new stablecoin that can adjust to changes quickly, and provide more room to scale without impacting native LST users and holders of mkUSD was needed.

By minting $ULTRA with their LRT, depositors can retain all of the rewards, points, and upside from owning an LRT, and unlock their capital as ULTRA, a stablecoin that can help them capture additional opportunities and yield on Prisma or throughout DeFi.

Launch Assets

We are proud to collaborate with some of the leading protocols in the LRT ecosystem. This close relationship allows us to design PrismaLRT to be as close as possible to the specificity and needs of this industry.

PrismaLRT will launch supporting initially one asset, weETH from ether.fi.

We have decided to initially start using weETH, with more assets to be added over time. Our strong collaboration with the respective LRTs teams and RedStone Oracles gives us confidence in the swift integration of these LRTs, providing Prisma users with more collateral options.

Governance

PrismaLRT will be governed by the PRISMA DAO, giving holders of locked PRISMA a say in the future of the protocol through voting. It is important to note that governance participants will be responsible for redirecting emissions towards PrismaLRT as well as voting on proposals made to the DAO.

What’s next?

PrismaLRT will be the cornerstone on which Prisma will expand within the LRT ecosystem, enabling more collateral options, while managing risk.

By unlocking liquidity for LRT holders and fostering collaboration with leading protocols in the field, PrismaLRT is set to open new market possibilities to benefit both PRISMA and LRT holders.

Join the Prisma Community

To get involved and stay up to date:

• Visit the website: Prismafinance.com

• Read through the documentation

• Meet the community on Discord

• Follow @PrismaFi on Twitter