PRISM Launch Announcement
For PRISM to reach its full potential, PRISM tokens must be distributed to a diverse and decentralised group of future refractors. Today we announce the launch sequence for PRISM.
PRISM will launch in 4 phases:
- PRISM Forge. Turn UST into PRISM tokens
- PRISM Swap. PRISM tokens will be available to swap on the PRISM AMM and PRISM Forge tokens are released
- PRISM Refract. Let the LUNA refracting begin!
- PRISM Farm. The Farm Shop opens, and users can swap their yLUNA yield for PRISM tokens
PHASE 1 — PRISM Forge
Starting Feb 1, 2022
During this 5 day stage, 70,000,000 tokens (7% of the total supply) will be released to participants who will contribute UST to a pool. This will determine the price, and PRISM tokens will be distributed to all contributors in proportion to the amount of UST they have deposited. This means all users will get the same price.
There will be two stages of the launch:
Stage 1: Deposits and Withdrawals (96 hours)
During this period users can contribute as much UST into the pool as they would like. Depositing in the first stage comes with no obligations and gives participants the option to swap into PRISM tokens, whilst still having the right to withdraw their full amount of UST deposit at any time before the start of Stage 2.
Stage 2: Withdrawals only (24 hours)
During this stage, participants can only withdraw the UST that they deposited during Stage 1. Any UST withdrawn in this stage is irreversible and cannot be re-deposited. As only withdrawals are allowed, during this stage the price of PRISM can only get cheaper as time passes. At the end of the second stage, users will receive PRISM tokens in proportion to the amount of UST they have in the pool.
There are three important pieces of information for this stage:
- Users will be able to make a maximum of one withdrawal transaction during this stage.
- The amount of UST that can be withdrawn will decrease at the end of every hour by 1/24th (4.2%) of the total amount of UST each user has at the start of stage 2. For example, during the first hour you will be able to withdraw 100%, followed by 95.8% the next hour, followed by 91.7% the next hour and so on until the end of the 24 hour period.
- All the PRISM tokens from this stage will be released during Phase 2. This means there will be no long vesting periods or large unlocks.
The price per token can be calculated with the following formula:
(Total UST in Vault) / (70,000,000 PRISM Tokens)
The amount of PRISM tokens the participant receives can be calculated as:
(Participant’s UST in Vault / Total UST in Vault) x (70,000,000 PRISM Tokens)
We believe launches should be fair, transparent, and easy to understand. PRISM Forge is an ideal way to launch as:
- buyers will all get the same price
- bots cannot front-run or take significant amounts or the initial supply
- participants will have plenty of time at each stage
- it will reduce network congestion as the launch is spread over a longer duration
Community members have raised concerns that if there were no limits in stage 2 then larger participants may try to deter others by depositing significant amounts of UST in stage 1, only to then remove substantial amounts of that UST at the very end of stage 2. This could be done with the intention of dissuading participation by making the price look artificially high, only to collapse the price at the end and secure themselves cheaper tokens. The measures above have been implemented to address these concerns and discourage such behavior.
PHASE 2 — PRISM Swap
Estimated Feb 6, 2022
Following the close of Phase 1, a PRISM-UST pool will be created and all PRISM tokens from Phase 1 will be released. Users will be able to buy PRISM tokens on a DEX for the first time.
PRISM governance will be enabled allowing uses to deposit their PRISM tokens into the xPRISM pool, and receive xPRISM tokens in return. Users of the protocol will generate fees (more details below) which will be collected, converted to PRISM tokens, and then distributed into the xPRISM pool which in turn increases the value of each xPRISM token. xPRISM is a liquid and auto-compounding token and as such a xPRISM-PRISM liquidity pool will be created allowing users to be liquidity providers, whilst still earning governance rewards.
PRISM uses its own DEX and Automated Market Maker (AMM) called “PRISM Swap” which will allow for decentralised token swaps. Users can choose to stake their LP tokens to receive available liquidity incentives. The protocol earns fees on each swap that occurs which are used to buy PRISM tokens that are then distributed into the xPRISM pool.
PHASE 3 — PRISM Refract. Let the LUNA refracting begin!
Estimated Feb 11, 2022
Following PHASE 2, PRISM will open its Testnet to users, allowing them to experiment with refracting LUNA. After a short Testnet period, Mainnet will be activated and, for the first time ever, users will be able to split their LUNA into yLUNA and pLUNA. The webapp will also allow users to:
- Stake yLUNA and start receiving staking rewards, which are automatically converted to additional yLUNA and pLUNA, and airdrops.
- Provide liquidity and receive Liquidity Provider (LP) tokens in return, which can then be staked to start receiving liquidity incentives.
- Stake PRISM to receive xPRISM; participate in governance and earn protocol fees.
- Use PRISM Swap to trade or leave limit orders to buy or sell tokens including PRISM, xPRISM, LUNA, yLUNA, pLUNA, cLUNA, UST and aUST.
PHASE 4 — PRISM Farm. Opening the Farm Shop!
Estimated Feb 16, 2022
Once LUNA is refracted into yLUNA and pLUNA, users will be able swap their yLUNA yield for PRISM tokens. During this stage there will be 130,000,000 tokens (13% of the total supply) distributed linearly over the course of one year. The event will follow a similar format to other community farming events that users may be familiar with, where yield is swapped for protocol tokens, but with some key differences:
- Each PRISM token earned will be claimable 30 days later. This smooth release means there will be no long vesting periods or large unlocks.
- Users will be able to remove their yLUNA at any time from the farming event without incurring any withdrawal fees.
- Because the PRISM token will already be trading on the DEX, users will have a live yield price in the farm.
Warning: For any staked LUNA, it is recommended to start the 21-day unstaking process to participate in the yLUNA farming event.
PRISM Token Distribution
- 20% PRISM Treasury
- 7% PRISM Forge
- 13% yLUNA Farming Event
- 30% Core Contributors and Service Providers
- 10% Strategic Partners, Advisors and Collaborators
- 20% Community Fund and Liquidity Incentives
- Core Contributors and Service Providers — tokens vest linearly from month 6 to month 24
- Strategic Partners, Advisors and Collaborators — tokens vest linearly from month 6 to month 24
- yLUNA Farming Event — issued linearly over one year from the start of farming event
- Community and Liquidity Incentives — Distributed over 4 years
- PRISM Treasury— Distributed at TGE into a multisig. Tokens held by the multisig may be used to bootstrap liquidity.
The PRISM Token
PRISM holders who wish to participate in governance can stake their PRISM tokens and receive xPRISM in return, with a 21-day unbonding period. Users of the protocol will generate fees which will be collected, converted to PRISM tokens, and then distributed into the xPRISM pool. These fees could come from several different sources:
- 10% of the yield of yASSETs bonded in PRISM, e.g., yLUNA tokens that are in the normal yLUNA staking contract or the yLUNA Farming Event
- 100% of the yield of unbonded assets, e.g., yLUNA tokens that are being used to provide liquidity
- 0.1% of the value of all swaps generated in PRISM Swap
- 0.3% of the value of all limit orders successfully executed in PRISM
We are thrilled to ship and finally have PRISM in the hands of the community.
For all the latest updates and information: Telegram, Discord, Litepaper and Resources ➡ prismprotocol.notion.site
Disclaimer: These dates may be subject to change pending market conditions or otherwise. Fees levied by the protocol listed may be subject to change. For further disclaimers please see https://prismprotocol.notion.site/Disclaimer-3e9076a7c6cc4eb39562478b65928972