Prisma Finance’s LSD Stablecoin Protocol Launches ULTRA Stablecoin, Allows to Mint LSTs
In Brief
PrismaLRT by Prisma Finance introduced its new stablecoin ULTRA that enables users to utilize LSTs for minting.
Liquid Staking Derivatives (LSD) stablecoin protocol PrismaLRT, developed by Prisma Finance, introduced a new stablecoin ULTRA, enabling users to utilize liquid staking tokens (LSTs) for its minting. According to the announcement, PrismaLRT will initially support weETH from Ether.fi, intending to progressively incorporate additional assets.
PrismaLRT was designed with customized parameters and features to fully unlock liquid restacking tokens (LRTs) capabilities. The new protocol will be integrated into the Prisma user interface, facilitating a seamless borrowing experience for LSTs or LRTs users.
The ULTRA stablecoin is designed to adeptly respond to changes in the dynamic and emerging nature of LRTs, offering increased scalability without adversely affecting the experience of native LST users and holders of mkUSD, according to Prisma Finance.
Minting the ULTRA with LRT will allow depositors to preserve all associated rewards, points, and potential gains linked to their ownership of an LRT, simultaneously enabling them to convert capital into a stablecoin. Thus, Ultra provides the flexibility to explore additional opportunities and yield within the Prisma Finance platform or across the broader decentralized finance (DeFi) landscape.
To facilitate the launch of Ultra, PrismaLRT collaborated with RedStone Oracles, accelerating the integration of LRTs and expanding collateral options for Prisma Finance users.
The new entity will be governed by Prisma DAO, which will empower holders of locked stablecoins to actively shape the protocol’s future through voting mechanisms. Participants in governance will play a key role in directing emissions towards PrismaLRT and participating in the decision-making process by voting on proposals presented to the DAO.
Prisma Finance Explores the Realm of LRT with PrismaLRT
Prisma Finance is a DeFi protocol designed to leverage the capabilities of Ethereum liquid staking tokens. Within the Ethereum network, Prisma Finance accommodates diverse forms of liquidity collateral, encompassing wstETH from Lido, rETH from Rocketpool, cbETH from Coinbase, and sfrxETH from Frax. The project received joint endorsements from the founders of several projects, such as Curve Finance, Convex Finance, Swell Network and CoingeckoFinance.
Outlining further plans, the project team intends to focus additional efforts on PrismaLRT, primarily extending the LRT ecosystem and diversifying collateral options while managing associated risks. Additionally, Prisma Finance intends to foster collaboration with prominent protocols within the sector, positioning PrismaLRT to explore new market opportunities.
Prisma Finance’s introduction of the ULTRA stablecoin positions the project as a dynamic force in the evolving landscape of LSD, fostering growth and adaptability.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
