2022 has been a brutal year for communities and builders alike and many lessons have been learned. With the benefit of these learnings and the experience of launching on Terra Classic, the vision for Prism v2 has significantly enlarged. It will be a protocol specifically dedicated to the monetising, trading and deploying of cashflows from yield-bearing assets. Users will convene to get fixed yields or raise cash by selling their future yield. Prism aims to create primitives that will spawn an ecosystem of innovative dAPPS building on top of the cashflows generated by yield-bearing Layer 1 and DeFi assets.
Launched originally on the Terra Classic network, in February 2022, Prism quickly found product market fit with its innovative LUNA derivatives peaking at ~$800m TVL, ~$70m in liquidity on its native AMM and ~$3Bn annualized trade volume within 3 months of launch. Following the crash of Terra in May, time was taken to completely redesign the protocol from the ground up. Prism v1 amassed a strong and vibrant community and many of them have made clear that they would like to be part of the journey to Prism V2.
Prism V2 works by allowing users to take yield-bearing assets (YBAs) such as Eth, Atom, Dot, Matic, Osmo or Luna and splitting them into two fixed term assets; a Principal Token (PT) and a Yield Token (YT). The YT allows the user to earn all the yield generated by the YBA during the fixed term and the PT allows the user to claim back the YBA at the end of the fixed term. The free market will determine the price of these assets on Prism’s new capital efficient AMM. By trading their future yield users neither have to lock away their assets for long periods of time to earn future yield, nor risk liquidation and pay volatile interest rates to raise capital against their assets. More exciting details will be published shortly.
The success of Prism on Terra Classic would not have been possible without two key groups of users: (1) Prism Holders and (2) LUNA Refractors. There was a significant crossover between these groups with many users “AMPlifying” their LUNA yield by pledging their PRISM tokens.
Prism V2 is also made possible by the Terra 2 Emergency Builder Allocation.
Today we are excited to announce the airdrop for Prism V2.
Airdrop Eligibility 🪂
Users can earn an airdrop by being in one, or more, of the following categories:
⚪ LUNA delegators to Prism Validator & CLUNA holders
- Delegate LUNA to the new Prism Validator — click here
- Mint cLUNA on Terra 2 and hold it in your wallet — click here
- cLUNA — LUNA liquidity providers on Astroport — click here
Snapshots for (1) & (2) will be taken ~weekly commencing 26th–28th November 2022. A weighted average of balances from the weekly snapshots will be used to determine the airdrop amount.
Snapshots for (3) will follow the same format as (1) and (2) but will commence when there are ASTRO incentives on the cLUNA-LUNA liquidity pool.
⚪ PRISM holders on Terra Classic
If you held $PRISM on Terra Classic at either of these two snapshot dates you will receive an airdrop:
- Snapshot 1: Block 7544910 (May 7, 2022)
- Snapshot 2: Block 7790000 (May 26, 2022)
❗AMPlified Airdrop — PRISM holders at these snapshot dates who also (1) delegate to Prism Validator and/or (2) mint and hold cLUNA will receive a boosted airdrop. This is similar the the AMPs mechanism in v1
As discussed in “cLUNA Launch and Prism Update”, cLUNA will be a core part of Prism V2 and this distribution aims to encourage users to mint cLUNA to later refract in Prism V2. Because the airdrop of LUNA tokens on Terra 2 has vesting periods we understand many users won’t be able to immediately mint cLUNA, and so LUNA delegators are included in the Airdrop
Where can I mint cLUNA?
Please see the link here
Where can I delegate to Prism Validator?
Please see the link here. Make sure to click “delegate” or “redelegate”.
Will the tokenomics in V2 be the same as V1?
No. Given the widescale changes that have been made to improve the protocol and deliver real value to users, different tokenomics will be appropriate to ensure the highest chance of success. The distribution, token amount, fee capture and emission schedule are all likely to be improved for holders in V2. Further details will be published in due course once they are finalised.
How much of total supply will be airdropped?
The total airdrop amount will be confirmed when the tokenomics are finalised. Funds raised from the Prism validator will be used as a sustainable way to help finance the building of V2 and reduce the need to rely on external funding sources such as grants or VCs. The larger the delegation to Prism validator the higher the proportion of tokens that can be airdropped and the more decentralised the ownership of Prism v2 can become.
How to claim the Airdrop?
When V2 is live the necessary steps to claim will be clearly communicated
Why were these two snapshot dates taken?
The dates were chosen to be consistent with the Terra 2 airdrop. Future airdrops may be announced in due course.
Does Prism V2 replace Prism V1
No. They will be two entirely separate protocols running on different chains.
When will the airdrop be?
The protocol is expected to go live in Q1 2023
What is PRISM V2
More details and a full litepaper will be published in due course.