A user with a Yield-Bearing Asset (YBA) will be able to commit that asset to the Asset Vault (AV) and in return they will receive a Collateral Token (CT) representing their claim on the asset in the AV.
PRISM will then perform the relevant action for the YBA that will begin generating yield that will accrue to the AV. For example with LUNA this will be delegating LUNA to a diverse set of validators which will start the process of receiving staking rewards and airdrops.
The CT can be converted into a Principal Token (PT) and a Yield Token (YT). The PT represents ownership of the underlying YBA and the YT represents the right to all future yield (including claimable airdrops) of the YBA.
Version 1.0 of PRISM will enable minting of perpetual LUNA PTs and YTs with no expiry.
Future versions of PRISM will enable users to mint PTs and YTs for different time periods. For example 1 month, 3 month, 6 month, 9 month of 12 month.