PRISM

TLDR

PRISM Refract and PRISM Farm are nearly upon us

PRISM Farm now comes with turbo-charged yield for yLUNA holders who also pledge xPRISM

xPRISM has increased utility and accrues more value

The amount of xPRISM you hold, and the duration you have held it for, will be used to determine your amplified yield.

We have completed PRISM Forge & PRISM Swap, and are now excited for the next phases of the launch: PRISM Refract and PRISM Farm. During these phases, users will be able to:

Refract: split their $LUNA into $yLUNA & $pLUNA,

Farm: swap $yLUNA’s staking yield for $PRISM tokens.

To dive deeper into PRISM Farm; this phase is akin to the “Community Farming Events”, “Pylon Pools”, and “Private Farming Events” commonly seen in the Terra ecosystem. We anticipate that this will be a popular yield-farming opportunity and the available APRs could be significantly higher than the standard $yLUNA staking APR.

During PRISM Farm:

130,000,000 $PRISM tokens (13% of the total supply) will be distributed over a 12-month period to $yLUNA stakers

Each farmed $PRISM token will be claimable 30 days after it is earned

$yLUNA can be unstaked at anytime without penalty

This phase will amplify yield for $yLUNA holders and value capture for $xPRISM holders. $xPRISM benefits when large amounts of yield-bearing assets are refracted. The larger the amount of $yLUNA during PRISM Farm, the higher the revenue to be distributed to $xPRISM holders.

With this in mind, we’re excited to introduce the amplified yields in PRISM Farm, called AMPS. AMPS help align Phase 4 participants’ incentives with the incentives of long-term $xPRISM holders by enabling users to signal their commitment and deposit $xPRISM tokens into a boosting vault. Committing more $xPRISM tokens and over a longer period of time will earn more AMPS and consequently earn even higher yields in PRISM Farm. Put simply, the more $xPRISM a user stakes and the longer it has been staked for, the higher the yield available to the user in Phase 4.

A few key details about AMPS:

AMPS is not a CW20 token and not tradable

There are no time lock commitments for $xPRISM in the AMPS vault.

You will earn AMPS for each block that your $xPRISM has been staked for. The more $xPRISM you stake and the more time passes, the higher number of AMPS you will earn.

AMPS reset to zero if any $xPRISM tokens are withdrawn from the AMPS vault which will encourage users to keep their xPRISM staked.

Remaining participants will receive higher yields as others leave the vault.

AMPS are designed to achieve several goals:

Encourage long term staking of $PRISM

Incentivize the purchase of $PRISM by those looking to join the farm

Align farming TVL directly with staked $PRISM

Incentivize farmers to stake their earned $PRISM to keep their yields high.

This boosting mechanism could also have other utility throughout a user’s interactions with the protocol. Some examples of potential utility:

Liquidity Incentives: When a user becomes a liquidity provider in any of the PRISM Swap pools and receives an LP token, the user can then stake that LP token to receive boosted incentives for higher yields.

Governance Voting: Increased governance voting power can be accrued as a long-term $xPRISM holder

Protocol Revenue: A portion of protocol revenue could be paid out exclusively to $xPRISM holders based on their boost amount.

To clarify, holding $xPRISM is not a requirement in order to participate in the PRISM Farm. However, users wishing to maximize their $yLUNA yield will want to accumulate and stake $PRISM.

We will be releasing specific mechanisms and an accompanying calculator in the coming weeks. In the meantime, come chat with the team and join the community discussions over on Telegram or Discord.

Let’s get AMPed up!