Prisma Finance introduced a stablecoin backed by Liquid Staking Tokens (LSTs) last year. <\/p>\n
Prisma has introduced<\/a> a stablecoin, ULTRA, which users can mint against Liquid Restaking Tokens (LRTs) and a protocol to allow users to borrow against the novel assets.<\/p>\n By borrowing ULTRA against their LRTs, depositors can retain all of the rewards restaking protocols are distributing to incentivize users, while capturing additional opportunities on Prisma or throughout DeFi via the stablecoin, Prisma said.<\/p>\n At launch the only LRT which users can borrow against is weETH, an LRT from ether.fi<\/a>, with more assets to be added over time.<\/p>\n While LSTs are tokens that represent staked ETH, LRTs are tokens that represent deposits in liquid restaking protocols, such as Ether.fi, Puffer, Kelp DAO and Renzo. <\/p>\n These liquid restaking protocols serve as a gateway to restaking protocol Eigenlayer. Eigenlayer allows Ethereum stakers to use their staked ETH to secure other Ethereum-based protocols.<\/p>\n Prisma\u2019s release of ULTRA aims to add utility to LRTs.<\/p>\n The development comes after Eigenlayer soared<\/a> to become the fourth largest protocol in DeFi with $7.1B in total value locked (TVL).<\/p>\n To be sure, as the restaking space gains speed, prominent voices like Vitalik Buterin<\/a>, Ethereum\u2019s co-founder, have spoken on the dangers<\/a> of extending the security derived from staked ETH too far.<\/p>\n Prisma Finance introduced mkUSD, a stablecoin backed by Liquid Staking Tokens (LSTs) last year.<\/p>\n <\/p>\n Start for free<\/a><\/div>\n <\/p>\n Prisma\u2019s mkUSD, which users can borrow against LSTs like Lido\u2019s stETH and Rocketpool\u2019s<\/a> rETH, has a market capitalization of $98M. Prisma\u2019s TVL, which is composed of LSTs, is $297M, according to DeFiLlama<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Prisma Finance introduced a stablecoin backed by Liquid Staking Tokens (LSTs) last year. Prisma has introduced a stablecoin, ULTRA, which users can mint against Liquid Restaking Tokens (LRTs) and a protocol to allow users to borrow against the novel assets. By borrowing ULTRA against their LRTs, depositors can retain all of the rewards restaking protocols […]<\/p>\n","protected":false},"author":2,"featured_media":248211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-248210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/248210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=248210"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/248210\/revisions"}],"predecessor-version":[{"id":248213,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/248210\/revisions\/248213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/248211"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=248210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=248210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=248210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}LSTs and LRTs<\/h2>\n
Prisma’s mkUSD<\/h2>\n
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