Prisma Finance
Crypto Overview
Overview
Prisma Finance is a decentralized protocol built on Arbitrum that aims to create a more capital-efficient and sustainable DeFi ecosystem. It is designed as a fork of Liquity, incorporating improvements in liquidation mechanics and collateralization.
Purpose and Utility
The PRISMA token serves as a governance token for the Prisma Finance protocol. Token holders can participate in governance decisions affecting protocol parameters and development. Additionally, users staking PRISMA tokens receive a share of protocol fees.
Business Model
The protocol generates revenue through liquidation fees and borrowing fees. These fees are distributed to PRISMA stakers. The protocol allows users to create over-collateralized positions to mint pUSD, a USD-pegged stablecoin.
Development and Adoption
The protocol has shown active development since its launch, with regular updates and improvements to the platform. The team maintains transparency through detailed documentation and regular community updates.
Token Distribution
The token distribution includes allocations for: Protocol Owned Liquidity (30%), Community Incentives (25%), Protocol Development (20%), Team (15%), and Initial Token Offering (10%). Team tokens are subject to a vesting schedule.
Revenue Model Analysis
The primary revenue streams come from protocol fees rather than interest-based lending. The over-collateralization requirement and liquidation mechanics are designed to maintain system stability rather than generate interest income.
Crypto Impact
To assign a comfort level investing in Prisma Finance from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Prisma Finance.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.