Prisma Finance launched at the tail end of August, 2023, enabling holders of various types of LST collateral to mint mkUSD against their tokens. The DAO launched a month later with an innovative new veToken model.
This multi-collateral system was an advance on the codebase Prisma uses; later Prisma unveiled the ability to have multiple tranches for each collateral and launched PrismaLRT and the stablecoin $ULTRA for liquid restaking tokens.
As a latest piece, Prisma will soon be launching a tokenized stability deposit, enabling users to deposit mkUSD into the stability pool and mint smkUSD, thereby allowing them to enjoy the benefits (i.e. APR) of the stable pool while having the option to use their capital elsewhere in DeFi-land. But first, some updates:
Today we are announcing some important updates
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The original Vaults for all of the LSTs will be deprecated. The original Vaults had a 4% interest rate cap and the new Vaults will allow for higher interest rates.
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The current Vaults for all of the LRTs will be deprecated and replaced. This change will include some optimizations that will make redemptions more efficient.
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We have a migration tool that makes migrating your vault easy. No need to unwind your leverage or LP positions.
Who does this affect?
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The 4 original LST Vaults with the IR cap will be deprecated: wstETH-A, sfrxETH-A, rETH and cbETH.
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The 3 current LRT Vaults: weETH, ezETH and rsETH.
How will this happen?
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Prisma will provide a migration tool for users to move their positions to the new Vaults..
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New Vaults will have a 0% mint fee for a limited time, allowing users to migrate their positions from the old Vaults without paying a mint fee .
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In approximately 7 days, the old LRT Vaults will be set to a “Sunset” status, which will increase the interest rate on the Vaults to 50%. Users should migrate into the new Vaults using the migration tool in order to avoid paying this rate.
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In approximately 10 days, the old LST Vaults will be set to a “Sunset” status, which will increase the interest rate on the Vaults to 50%. Users should migrate into the new Vaults using the migration tool in order to avoid paying this rate.
When will this happen?
Prisma is a DAO, and these changes will follow the normal governance process:
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A post in our governance forum.
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A snapshot ‘temperature’ vote.
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On-chain voting.
There will be three votes:
Vote 1
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Deploy new Vaults and add them as emission receivers.
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Disable old Vaults as emission receivers.
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Set max debt on old Vaults to zero.
Vote 2 (4 days after vote 1)
- Sunset LRT Vaults: interest rate rises to 50%.
Vote 3 (7 days after vote 1)
- Sunset LST Vaults: interest rate rises to 50%.
I have a Vault on Prisma and am affected, what do I have to do?
To avoid any issues with having to pay the Sunset IR rate of 50%, users with Vaults on Prisma should migrate their positions to the new Vaults as soon as possible, preferably during a period of low gas prices.
Mint fees will be 0% during this time, so no further costs will be incurred for opening a position in the new vault.
Migration tool
To help migrate your vault, Prisma’s based devs have built a tool to migrate your vault without having to buy back your stable coin, unwind any positions or remove your liquidity from Curve or other DEXes.
The tool will be available when the new vaults are live.
Questions and concerns
For questions and concerns, please head to our discord and the team will be happy to answer any questions.
Join the Prisma Community
To get involved and stay up to date:
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Visit the website: Prismafinance.com
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Read through the documentation
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Meet the community on Discord
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Follow @PrismaFi on Twitter