The PRISM & xPRISM Tokens

The PRISM Token

The xPRISM Token

  1. Governance: 1 xPRISM = 1 unit of voting power. Only xPRISM can participate in governance, making decisions on asset listings, community spending and more.
  2. Fees: xPRISM holders will receive a share of protocol revenue. This will be done by using the fees levied by the protocol to buy PRISM on the PRISM Swap decentralised exchange and then adding those PRISM tokens to the xPRISM pool.
  1. 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.
  2. 100% of the yield of unbonded assets, e.g. yLUNA tokens that are being used to provide liquidity
  3. 0.1% of the value of all swaps generated in PRISM Swap
  4. 0.3% of the value of all limit orders successfully executed in PRISM


Utility of xPRISM

  1. Because xPRISM is a claim on a pool of PRISM tokens you don’t need to manually claim staking rewards and decide what to do with them. Your rewards are auto-compounded. This could also mean xPRISM is a capital asset and not an income asset
  2. Many governance tokens are locked away and illiquid, but xPRISM is a liquid token and can be used elsewhere in DeFi whilst still increasing in value vs PRISM.
  3. xPRISM can be used in liquidity pools and still increases in value vs PRISM as it is a compounding token. For example you could be a liquidity provider in the xPRISM-PRISM liquidity pool and be earning xPRISM yield, AMM fees and liquidity incentives.
  4. xPRISM works well cross-chain. You could send xPRISM over bridges to other chains and know that the value of xPRISM is constantly increasing vs PRISM. For similar reasons you could also send xPRISM to centralized exchanges or non-custodial wallets and still receive the benefits of the compounding.
  5. xPRISM could be used as collateral in other DeFi protocols. As a compounding token xPRISM could be approved by governance in other protocols to be pledged as collateral to borrow, lend or mint other assets whilst still compounding in value vs PRISM.

PRISM Initial Distribution

  1. There are no airdrops of PRISM tokens and as such no airdrop tokens that can be sold when the protocol is listed on the decentralised exchange.
  2. Vesting tokens for contributors and partners are subject to a smooth linear vesting period between month 6 and month 24. All those receiving vesting tokens have played an important role in the building, designing and functioning of the protocol. As it is linear vesting there are no large unlocks.
  3. As there has been no fixed price swap event at a low price there are no holders of PRISM with large unrealized gains who may otherwise be inclined to take immediate profits and sell on the initial DEX listing.
  4. It is intended that a large amount of initial liquidity will be provided meaning that the protocol does not rely on large inflationary liquidity incentives which could otherwise dilute holders.
  5. Any tokens used by the treasury to provide the initial liquidity will remain the property of the treasury.

Additional Resources



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