We’re excited to announce that Prism Farm will be launching Monday 7th March!
In this article we’ll cover everything you need to know about Prism Farm and how it works.
What is Prism Farm?
Prism Farm allows you to stake $yLUNA in the Prism Farm contract and receive $PRISM tokens in exchange for your $yLUNA yield.
130m $PRISM tokens (13% of the total supply) will be available in the Prism Farm event and will be farmed over a 12 month period, with an equal amount of $PRISM released per block and distributed between the Prism Farm participants. Tokens will then be vested linearly 30 days after they were initially farmed.
The 130m $PRISM tokens have been split into 2 pools, the Base Pool and the AMPS Boosted Pool. Initially 80% of the tokens will be allocated to the Base Pool and 20% of the tokens will be allocated to the AMPS Boosted Pool. The proportion allocated to the AMPS Boosted Pool may be increased from 20% during the farming event to increase rewards for farmers who stake the $PRISM they farm and pledge it to earn more AMPS.
The Base Pool
104m $PRISM will be available in the Prism Farm base pool. $PRISM tokens are allocated to $yLUNA stakers, over 12 months, per block proportionally based on the amount staked.
There are no barriers to entry to participate in the Base Pool $yLUNA farming and you can withdraw your $yLUNA from the farming event at any time without penalty.
To calculate a user’s share of the Base Pool rewards at any particular time, you can utilise the following formula:
The AMPS Boosted Pool
26m $PRISM will be allocated to the AMPS Boosted vault. To qualify for boosted rewards a user must have pledged $xPRISM to the AMPS Vault on the Prism Protocol Govern Page. Users are rewarded for being loyal stakers and pledging their $xPRISM with AMPS. AMPS are a non tradable token that accrues at ~0.5 AMPS per $xPRISM, per day — up to a maximum of 100 AMPS per $xPRISM (~200 days).
In short, the greater the combination of AMPS and $yLUNA that a user has, the greater their share of the Boosted Pool.
Similar to the Base Pool, a user can withdraw their $yLUNA from the farming event at any time without penalty, however should they remove any amount of $xPRISM from the AMPS vault, their AMPS will reset to zero.
When a user’s AMPS resets to zero, all remaining participants’ rewards and APR will increase.
The weight function and the reward for the boosting pool is defined as:
Users share of rewards each block is their weight as a proportion of the sum of all weights:
Why should I participate in Prism Farm?
Prism Farm is a way to acquire the $PRISM token in a lossless way. You are exchanging $yLUNA yield for $PRISM tokens. It’s likely that the APR on Prism Farm will significantly exceed the basic $yLUNA staking APR, depending on the current price of $PRISM and the amount of $yLUNA participating in the farming event.
You can make an estimation of the Prism Farm APR by adjusting the variables in this analytics tool created by one of our team: https://share.streamlit.io/lejimmy/prism/prism_farm.py
What Steps do I need to take to Participate in Prism Farm?
Steps to take before the farm starts:
- Refract $LUNA to get $yLUNA and $pLUNA:
- Within the Prism Protocol WebApp (prismprotocol.app) go to the “Refract” section.
- In the Refract section go to the “Split” tab
- Enter the amount of $LUNA you wish to deposit and click the “Accept & Split” button.
2. Stake your $yLUNA in the Prism Farm:
- In the Prism WebApp go to the “Stake” section.
- When Prism Farm is live you will be able to select “Stake” on the Prism Farm option.
- Within the Prism Farm page you will then be able to stake your $yLUNA within the Prism Farm staking contract by clicking the Stake button and selecting the amount of $yLUNA you wish to stake.
- Whilst you’re waiting for Prism Farm to start you can stake your $yLUNA in the normal $yLUNA staking contract to receive regular staking yields.
3. What can you do with your $pLUNA:
- Hold it in your wallet so that you can merge it with your $yLUNA and redeem you $LUNA, in full, at a future date.
- Pair it with $PRISM and provide liquidity to the $pLUNA/$PRISM liquidity pool.
- Swap your $pLUNA for more $yLUNA in the swap section.
Steps to AMPlify your Prism Farm Rewards:
- Buy $PRISM:
- In the Prism WebApp go to the “Swap” Section
- Choose the asset you wish to swap to $PRISM — you can buy $PRISM directly with $UST or you could choose to swap $LUNA, $yLUNA, $pLUNA or $cLUNA for $PRISM.
2. Stake your $PRISM to get $xPRISM:
- In the Prism WebApp go to the “Govern” section
- Under the Prism Staking Tab, select the Stake button and choose the amount of $PRISM you wish to stake
- You also have the option of swapping $PRISM to $xPRISM in the Swap section
3. Pledge $xPRISM to start earning AMPS to boost your yield in the Prism Farm:
- In the Prism WebApp go to the “Govern” section and then go to the “AMPS Vault” tab
- Select the Pledge button to pledge your $xPRISM to the AMPS vault
- Once your $xPRISM is pledged you will see how long you have been pledging for, the amount of AMPS per day you can expect to earn and how many AMPS you have earned to date
- IMPORTANT: You will need to activate your AMPS by clicking the lightning bolt button on the AMPS vault page to start earning yield from the Boost Pool. You will need to perform this action on a semi-regular basis as your AMPS accrue.
- Remember: If you un-pledge any $xPRISM from the AMPS vault your AMPS will reset to zero.
Steps to maximize your yield after the farm starts:
- Once your $PRISM from Prism Farm starts vesting you can convert it to more $xPRISM
- Pledge the $xPRISM to earn more AMPS and further boost your farming yield
- At any point during the farming event you can acquire more $yLUNA by refracting $LUNA, or buy $yLUNA directly on Prism Swap using $UST.
- You could also buy more $PRISM, convert to $xPRISM and pledge to the AMPS vault to further boost your yield.
Appendix:
Prism Farm practical examples:
Base Pool Example:
If there is 1,000,000 $yLUNA in the Prism Farm and I am staking 1,000 $yLUNA my share of the Base Pool is 0.1% of the rewards distributed per block. If another 1m $yLUNA is then added to Prism Farm, my share of the rewards would reduce to 0.05% per block.
AMPS Boost Pool Example:
Take for example three participants: Danku, Cephii, and Westie. In this particular block let’s say 100 $PRISM rewards are available.
Danku has 100 $yLUNA and has 100 AMPS. Cephii also has 100 $yLUNA, but he has been pledging longer and consequently has 400 AMPS. And finally, Westie has 100 $yLUNA and also has 400 AMPS.
If we do the math for the weighted function above, Danku has a weight the square root of 100 times 100, which equals 100. Cephii has a weight of 200. Westie will also have a weight of 200. The total weight amongst all farmers is 500.
To calculate Danku’s boosted rewards, we’ll divide his weight 100 by the total weight 500, which equals 0.2. Then multiplying the weight by the 100 available $PRISM rewards, Danku will receive 20 $PRISM.
Using the same formula, Cephii will receive 40 $PRISM tokens and Westie will receive 40 $PRISM tokens. As you can see, the amount of AMPS can make a large impact on your boosted rewards.
For the last example, let’s say Westie has an emergency and needs to cash out his $xPRISM. He un-pledges and his AMPS are reset to zero. Only Danku and Cephii remain in the farm.
For the next block of 100 $PRISM rewards, the new allocations would be 33.3 $PRISM for Danku and 66.7 PRISM for Cephii. Even though Danku & Cephii didn’t take any additional action, they were positively impacted by Westie leaving the AMPS vault.
For more information on Prism Protocol, visit our Notion site: prismprotocol.notion.site
