Prisma mkUSD PriceMKUSD

What is Prisma mkUSD (MKUSD)?

Prisma mkUSD (MKUSD) is an over-collateralized stablecoin pegged to the US dollar, issued by Prisma Finance, a non-custodial stablecoin protocol built on Ethereum. Prisma Finance is a decentralized borrowing protocol that allows users to mint mkUSD backed exclusively by liquid staking tokens (LSTs). It is described as "the end game for liquid staking tokens" — a non-custodial and decentralized Ethereum LST-backed stablecoin. The technology behind MKUSD is rooted in the Prisma Protocol, a decentralized borrowing protocol that offers a stablecoin exclusively backed by LSTs. The Prisma co-founder named Liquity, another collateralized debt protocol, as an inspiration for the protocol. MKUSD launched on September 20, 2023, and is an ERC-20 token on Ethereum. Its on-chain max total supply is approximately 245,227.57 MKUSD, with a circulating supply of roughly 245,227.57 MKUSD. The token contract uses Solidity compiler version v0.8.19+commit.7dd6d404 with optimization enabled at 200 runs, paris EVM version, and an MIT license. The contract name is DebtToken.

Key Specifications & Tokenomics

• Name: Prisma mkUSD
• Ticker / Symbol: MKUSD
• Blockchain / Platform: Ethereum (ERC-20 token)
• Token Contract Address: 0x4591DBfF62656E7859Afe5e45f6f47D3669fBB28
• Contract Name: DebtToken
• Compiler Version: v0.8.19+commit.7dd6d404
• Optimization: Enabled, Yes with 200 runs
• EVM Version: paris
• License: MIT
• Token Type: ERC-20 stablecoin (over-collateralized, pegged to the US dollar)
• Token Decimals: 18
• Max Total Supply (on-chain): 245,227.567370182627102683 MKUSD
• Total Supply: 245,227.57 MKUSD
• Circulating Supply: 245,227.57 MKUSD
• Fully Diluted Market Cap: $245,271.22
• Onchain Market Cap: $245,271.22
• Holders: 1,189
• Transactions: 11,228 transactions and 1,186 holders
• Start Date: 2023-09-20
• Official Website: https://prismafinance.com/
• X (Twitter): https://twitter.com/PrismaFi (@PrismaFi)
• GitHub: https://github.com/prisma-fi/
• Governance Token: PRISMA (maximum total supply 300 million; 62% / 186,000,000 PRISMA allocated towards emissions)

Who created Prisma mkUSD?

Prisma Finance was founded by an anonymous team and launched in the fall of 2023. One source states Prisma mkUSD was founded by Victoria Ransom and Alain Chuard; Victoria Ransom is described as a seasoned figure. A Prisma co-founder publicly referenced Liquity as an inspiration for the protocol. Prisma is backed by Curve Finance founder, Convex Finance founders, CoinGecko founders, Amplice and Ivan from GearBox. Prisma Finance pulled in $30M with its LST-backed mkUSD stablecoin, with the raise moving from $20M to $30M.

How does Prisma mkUSD work?

MKUSD is an over-collateralized stablecoin issued by the Prisma Protocol, a decentralized borrowing protocol on Ethereum. Users mint mkUSD by depositing liquid staking tokens (LSTs) as collateral. The protocol is non-custodial and decentralized, meaning users retain control of their assets throughout the borrowing process. The DebtToken contract constructor takes parameters including `_name`, `_symbol`, `_stabilityPoolAddress`, `_borrowerOperationsAddress`, `prismaCore_` (contract IPrismaCore), `_layerZeroEndpoint`, `_factory`, `_gasPool`, and `_gasCompensation`. The contract includes LayerZero endpoint integration with events including `_srcChainId`, `_srcAddress`, and `_nonce`, indicating cross-chain capability. The token uses a UI Multiplier mechanism based on the UIMultiplierUpdated event, where displayed token amounts are scaled by the active multiplier. The protocol references a Stability Pool and Borrower Operations in its contract architecture.

What makes Prisma mkUSD unique and valuable?

MKUSD is unique because it is exclusively backed by liquid staking tokens (LSTs), positioning itself as "the end game for liquid staking tokens." This design allows users to mint a stablecoin while continuing to earn staking rewards on their LST collateral. The protocol is non-custodial and decentralized, providing users with full control over their assets. The integration of LayerZero endpoint in the token contract enables cross-chain messaging capabilities. The UI Multiplier mechanism provides flexibility in how token amounts are displayed. Prisma Finance is backed by notable figures in the DeFi space, including the Curve Finance founder, Convex Finance founders, and CoinGecko founders. The protocol's inspiration from Liquity, a well-regarded collateralized debt protocol, lends additional credibility to its design.

What is Prisma mkUSD used for?

MKUSD serves as a stablecoin pegged to the US dollar, designed for use within the Prisma Finance ecosystem and broader DeFi applications. Users can mint MKUSD by depositing LSTs as collateral, providing liquidity without selling their staking positions. MKUSD can be traded on decentralized exchanges, with primary trading pairs including MKUSD/WETH and MKUSD/USDe on Curve (Ethereum). The token is used in Prisma's Stability Pool and Borrower Operations. Users can also optimize $mkUSD, $ULTRA, or LP tokens through Prisma's earn platform. Prisma competed in @defiapp's Degen Arena as team Prisma, where users could optimize these tokens and visit app.prismafinance.com/earn to earn. MKUSD also possesses hedging value against geopolitical and macro uncertainties, making it suitable for inclusion in a diversified asset portfolio.

How Is the Prisma mkUSD ecosystem developing?

The Prisma mkUSD ecosystem is centered around Prisma Finance, the issuing protocol, which is a non-custodial stablecoin protocol built on Ethereum. Curve (Ethereum) serves as the primary DEX venue for MKUSD trading pairs, including MKUSD/WETH and MKUSD/USDe. LayerZero provides cross-chain endpoint integration in the token contract. Prisma Core is referenced in the contract constructor as IPrismaCore. The ecosystem includes a Stability Pool and Borrower Operations. Prisma competed in @defiapp's Degen Arena as team Prisma. The protocol has a governance token, PRISMA, with a maximum total supply of 300 million, of which 62% (186,000,000 PRISMA) is allocated towards emissions. Prisma Finance suffered an $11.6 million exploit on March 28, 2024, which led to asset value plummet and mkUSD stablecoin instability, and the platform halted operations after the flashloan heist. The ecosystem continues to develop with ongoing community activity and platform updates.

How to mine Prisma mkUSD?

MKUSD is not mined through traditional proof-of-work or proof-of-stake mechanisms. Instead, it is minted by users who deposit liquid staking tokens (LSTs) as collateral into the Prisma Protocol. This process is akin to borrowing: users lock their LSTs and receive MKUSD in return, maintaining their staking exposure while gaining stablecoin liquidity. The protocol is non-custodial, meaning users interact directly with smart contracts. There is no traditional mining or staking mechanism for MKUSD itself. Users can participate in the ecosystem by providing liquidity to trading pairs or engaging with Prisma's earn platform to optimize $mkUSD, $ULTRA, or LP tokens. The governance token PRISMA has a maximum total supply of 300 million, with 62% allocated towards emissions, which may be distributed through various protocol activities.

How to keep your Prisma mkUSD Coin safe?

Keeping MKUSD safe requires attention to both smart contract risks and market risks. The MKUSD contract has no Contract Security Audit Submitted according to Etherscan, which means users should exercise caution and conduct their own research before interacting with the protocol. The Prisma Finance protocol suffered an $11.6 million exploit on March 28, 2024, through a flashloan heist, which led to asset value plummet and mkUSD stablecoin instability. This highlights the importance of understanding protocol risks. Peg stability risk is another consideration: the displayed price can be sensitive to a handful of trades when activity is low. The value of MKUSD is not widely recognized by the market, and the coin is considered medium-risk. Users should store MKUSD in secure wallets, avoid sharing private keys, use hardware wallets for large holdings, and stay informed about protocol developments. When trading, pay attention to liquidity divergence, control slippage and price spread risks, lower leverage, and use batch limit order strategies to avoid the impact of extreme market moves. In the medium to long term, MKUSD possesses hedging value against geopolitical and macro uncertainties, making it suitable for inclusion in a diversified asset portfolio to enhance its defensiveness and stability.