Frequent Asked Questions (FAQ)

What is PRISM?

PRISM is a new DeFi primitive empowering digital asset investors with the same derivatives available in traditional finance. PRISM allows users to lock in a fixed yield or price, or to take capital-efficient exposure to these components.

How does PRISM work?

PRISM splits a yield-bearing digital asset into its core components, a yield token (YT) and a principal token (PT). The yield-bearing asset is placed in a vault and the YT and PT are minted to be used at the asset-provider’s discretion.

How are prices determined?

YT and PT are traded on an AMM, allowing the market to determine the clearing level or value of each instrument.

What can you do with these assets?

YTs and PTs can be (1) staked in PRISM to earn the underlying asset’s yield or for participation in proxy governance voting , (2) committed to liquidity pools on the AMM to earn incentives and trading fees, (3) bought or sold on the AMM or (4) used as collateral to borrow or lend.

Will there be a $PRISM token?

Yes; $PRISM’s purpose is as a utility token. Users will be able to use $PRISM to mint $xPRISM which will allow them to participate in protocol governance and earn fees generated by the protocol.