Prisma Finance launched a stablecoin backed by Liquid Staking Tokens (LSTs) final yr.
Prisma has launched a stablecoin, ULTRA, which customers can mint in opposition to Liquid Restaking Tokens (LRTs) and a protocol to permit customers to borrow in opposition to the novel belongings.
By borrowing ULTRA in opposition to their LRTs, depositors can retain all the rewards restaking protocols are distributing to incentivize customers, whereas capturing further alternatives on Prisma or all through DeFi through the stablecoin, Prisma stated.
At launch the one LRT which customers can borrow in opposition to is weETH, an LRT from ether.fi, with extra belongings to be added over time.
LSTs and LRTs
Whereas LSTs are tokens that characterize staked ETH, LRTs are tokens that characterize deposits in liquid restaking protocols, equivalent to Ether.fi, Puffer, Kelp DAO and Renzo.
These liquid restaking protocols function a gateway to restaking protocol Eigenlayer. Eigenlayer permits Ethereum stakers to make use of their staked ETH to safe different Ethereum-based protocols.
Prisma’s launch of ULTRA goals so as to add utility to LRTs.
The event comes after Eigenlayer soared to change into the fourth largest protocol in DeFi with $7.1B in complete worth locked (TVL).
Prisma’s mkUSD
To make certain, because the restaking house features pace, outstanding voices like Vitalik Buterin, Ethereum’s co-founder, have spoken on the risks of extending the safety derived from staked ETH too far.
Prisma Finance launched mkUSD, a stablecoin backed by Liquid Staking Tokens (LSTs) final yr.
Prisma’s mkUSD, which customers can borrow in opposition to LSTs like Lido’s stETH and Rocketpool’s rETH, has a market capitalization of $98M. Prisma’s TVL, which consists of LSTs, is $297M, in line with DeFiLlama.
