Prism Protocol Decentralized Exchange Review

PRISM Protocol is a derivatives protocol that brings in fresh asset classes in DeFi. Therefore, users are able to manage risks arising from volatile prices and wobbly yields in an easy and capital-efficient way. To attain this, PRISM refracts digital assets into two unique parts, namely a yield element and a principal component. This serves to facilitate greater composability and liquidity for traders.

Prism Protocol overview

Here are some of the key features of the exchange:

• The automated market maker

This feature seeks to help users buy or sell the principal tokens and yield tokens or to supply liquidity and earn income from liquidity incentives and transaction fees. 

• The asset vault

A trader in possession of a Yield-Bearing Asset (YBA) can commit that asset to the Asset Vault (AV) and obtain a Collateral Token (CT) as a result. 

• Pledge

The platform allows you to pledge your xPRISM and receive AMPS as time goes by. Every xPRISM token is capable of generating revenue of up to 100 AMPS. If you unpledge any xPRISM amount, your AMPS balance will be reset to zero. 

• Govern

You can stake your PRISM tokens and obtain xPRISM tokens. As a consequence, you will be allowed to vote in governance and earn protocol fees.  

How does Prism Protocol work?

The DEX supports the following actions:

1. Swapping
2. Participating in governance
3. Creation and provision of liquidity
4. Borrow with no liquidation risk

What can you buy on Prism Protocol?

These are the assets you can use to transact on the platform:

• LUNA
• UST
• PRISM
• pLUNA
• yLUNA
• xPRISM
• cLUNA

Is Prism Protocol safe?

The devs want us to believe that the PRISM Protocol is safe. The platform underwent auditing by Oak Security and passed. TerraSVC is also engaged to offer continuous and comprehensive security assurance. Furthermore, the DEX doesn’t hold your funds and personal data on its servers, so no one can steal them even if they hacked your account. 

Prism Protocol fees, compatible wallets, and transactions

You will be required to pay some small transaction fees for using the protocol. These will then be changed into PRISM and allocated to the xPRISM pool. Successful implementations of a limit order attract a 0.1% fee of the order amount or the highest of 5 UST.

Prism Protocol works with a single wallet—Terra Station Mobile. 

What are the ways to trade on the Prism Protocol?

The platform provides the following trading options:

• Farming

You can use the Prism Farm to stake $yLUNA in the Prism Farm contract and obtain $PRISM tokens in return for your $yLUNA yield. 

• Staking

The platform permits you to stake your tokens so as to earn yield and other incentives. In fact, you stand to receive airdrops and Luna staking rewards, which can be changed to pLUNA and yLUNA. 

• Providing liquidity

By being a liquidity provider on the DEX, you qualify to earn liquidity incentives and transaction fees. 

Customer support

For customer support, PRISM Protocol has made available the following resources: a detailed documentation, Litepaper, a FAQ page, Twitter, Discord, Telegram, YouTube, and Medium. 

Should you trade with Prism Protocol?