Hello, welcome to The Ether. Today is Wednesday, January 19th 2022. This episode of The Ether is brought to you by Talis. Talis is the NFT marketplace on Terra built for artists by artists. Find all the hottest one of one NFTs side by side with all the larger collections. Be sure to check out some of the new features on Talis like the Verified Artist badge. Always know the NFT you’re bidding on or buying is the real deal by checking for that Verified Artists badge on the collection profile. Check out the Collections page to find all the exciting new mints including Spacetrip’s Space Alien, the GraviDAO Lunar Assistant NFTs, and MetaRacers. Keep on scrolling and find all the Terra NFT collections you know and love, like Terrain, Terrans, Sushi Armageddon, and so much more. Check out all the cool art on Terra by going to talis.art today. TerraSpaces appreciates their support. Today on The Ether we have the Prism Discussion hosted in the Orbital Command Terra Investment Strategies Discord. Let’s take a listen.
Rebel Defi 1:47
Jimmy, listen, if I get anything muddled up, just jump in, please. And get me on track.
Rebel Defi 1:55
Cool. Are you and Edwin okay for being on top of… Oh, Joseph’s here as well?
Yeah, I can…
Yeah, we’re all trying to…
I think you need to server mute is my understanding because that will mute them for everybody.
Rebel Defi 2:07
I think server mute blocks them from ever coming back on. Well, that’s what I was doing previously. Remember that very first thing we did? And then there was people who wanted to speak and they’re like, “Why can’t I speak?”
Yeah, they need to post in the Voice Questions if we mute them and they want to speak.
Rebel Defi 2:22
Well, there’s… Jimmy and Ryan, are you back on again in a few hours with Galactic Punks?
Yep. We sure are.
Rebel Defi 2:30
Awesome. Awesome. I need to follow up on your… I believe you sold a Punk for a four figure sum, Jimmy? I need to have a discussion with you about that.
Jimmy was scheming on that one for months?
Yeah, I really was.
Rebel Defi 2:45
That’s a class… I mean, things are going crazy with the NFTs at the moment, though. So quite an exciting time to be a holder.
Yeah, someone finally bought my Anons, which is fun.
Rebel Defi 2:55
I was thinking we could maybe just talk about the first couple of stages of the Prism launch before we even worry about sort of refracting and stuff. And if people have any questions about that, we could sort of maybe address those questions. And if people are wanting us to move on, we can do that. But hoping to sort of finish… We’re already five past six, but hopefully finish about seven o’clock UK time. So we’ll go for maybe 50, 55 minutes. Hopefully everyone’s okay with that. And obviously, you’ve got to drop out to do whatever you’ve got to do, that is completely okay.
Rebel Defi 3:29
Cool. Cool. So I mean, the dates we have then for Prism Forge starting is the 25th of January. Is that still standing, Ryan?
Yeah, as far as I understand. The Phase One is sheduled for 7am UTC on the 25th. I think that’s pretty fixed in.
Rebel Defi 3:50
Awesome. That was actually the question I was going to ask you. I wasn’t sure exactly what time it started. But that is good to hear. And then we’re going to have… Just jump over to the article that you’ve released. For people who aren’t aware… Is this Discord issues again? Right, so for anyone that’s not aware, I’m sure most of you already are, but from the Prism Twitter account, there is a link to their Notion site. Yeah, so the main Prism Twitter account, this link here opens up the site with essentially all the Prism information you might need. And there’s tons of great information here. I’m a big fan of the podcast. I think the way Hyperion sort of expresses himself in these podcasts is really great. I really enjoyed this one here. The GT Capital One. I don’t know Terranaut personally, but I thought the questioning was really top notch here. And one of my other favorites is this Delphi one. So if you’re looking for more information about how Prism works, I would highly recommend these two. Just jumping over, sorry, from this Notion site, we can get the launch announcement, which is right near the top, just under the video here. Is my screen coming through okay?
Yeah. It’s coming through great.
Rebel Defi 5:15
Awesome. So if you’ve not read this yet, I would highly recommend that you do read it. But just as Ryan was saying there, the first Phase of the Prism launch, Prism Forge is going to be at 7pm UTC on the 25th. of January. So this is where we’re gonna get a chance to… Is it fair to say it’s kind of like the Astroport sort of first or second phase of their sort of Lockdrop thing? And we’re… Sorry.
Yeah, I’d say it’s very similar but it’s only a single sided vault. So you can only deposit and withdraw UST, right. There’s no, there’s no PRISM in circulation, or that anyone’s got that they can put in the other side. It’s a fixed amount of 70 million.
Rebel Defi 6:09
100%. Yeah. I mean, that seems to be a question that comes up quite a lot on your Telegram. People asking for airdrops and stuff. So just to be 100% clear, there is no PRISM airdrop as far as I’m aware. These 70 million tokens are going to be the first PRISM tokens that anyone has a chance to get their hands on.
Yes, right. As far as I understand it, there’s no airdrop, and there’s no other way of getting your hands on the tokens before launch. This is the only way.
Rebel Defi 6:39
Awesome. I mean, it might be on a sort of personal level, people may be a bit disappointed about not getting an airdrop. I think when we sort of take a step back and think about that, I think that’s brilliant for the tokenomics. I mean, there’s not gonna be any dumpage of PRISM tokens as soon as they’re they’re tradable. So it literally is going to be these 70 million tokens that we are going to be able to hold. And therefore, once the DEX is live, I mean, who’s going to be selling PRISM? I don’t know. My initial idea was to not go into this Prism Forge and just wait, and then buy some tokens on the open market. But I think if doing that, by waiting, I’d end up paying more for my PRISM tokens than if I go in on Prism Forge. So my understanding of the way this is going to work, is for the first four days, from the 25th of January, I’m going to be able to deposit some UST into this pool. And that’s where my money is gonna get pooled with everyone else that sort of putting money into the pool. And then at the end of the fifth day, I’m going to receive a certain amount of PRISM tokens. Quite how much I’m going to get, I don’t know, because that really depends on how much UST and total ends up in the pool. I’ve got a sort of price in my head that maybe if PRISM goes over $5 a token, I might start to reconsider. And but to be honest, I don’t think I will. I think I’m just going to put my money in, and then whatever the price of PRISM tokens, that’s the price that I’m paying. Because I think holding PRISM, especially at the beginning of the protocol is going to be super exciting. I can talk about what… I mean the reason I put DMX on there was that at Orbital Command, we’ve been talking about staking our PRISM to hold xPRISM, and then get a share of all the swap fees, staking rewards. And what was the other one? The limit order fees, I think are going to be really quite exciting. Absolutely. So as far as stage one is concerned, Ryan, is that about right? We just put our money in we wait and then at the end of the fifth day, will receive our tokens, so that would be on the 30th of January?
Yeah, so I think there’s maybe a slight bit more nuance to add, which is, as you say during days one to four, you can deposit some UST, if you think that the PRISM token is overvalued, as you say, you can withdraw some or all of your UST. If you think it’s undervalued, I guess you can add UST so it’s completely flexible days one to four, you can go in and out, you can top up, you can partially withdraw. There’s a lot of flexibility there in terms of how you interact. But ultimately it’s just deciding upon an amount of UST that you’re comfortable with, and hopefully you’ll show the launch screen shortly which really gives you an idea of what the cost is per PRISM token, how much you’ll get for your UST. So yeah, so that first four days is really flexible. And I think day five is where it’s slightly different in that there’s no more depositing, you can only withdraw. And you can withdraw a decreasing amount of UST over the 24 hour period. It drops down every hour by about 4.2%. So in the first hour, you can withdraw up to 96% of your UST if you wish to. Or as the clock ticks down to the last hour, you’ll be able to withdraw up to 4% of your UST in the last hour.
Not personally expecting that there’ll be a large amount of movement in that last 24 hour period. I don’t think we saw a huge amount of movement during the Astroport withdrawal period, which is very similar, it was a very similar experience. And the reason that final bit has been put in, I think MrRefractor explained it well last night is that there was some concern… When I first saw this launch method, I was concerned that whales come in, they put tens, potentially even hundreds of millions of UST into the first stage, they put people off by overpricing the PRISM token and they wait right until the last second on day five to withdraw the UST that they don’t want to use and you know, decrease the price significantly, which then would have deterred a whole bunch of people who maybe wanted to participate from participating. So I think that sort of staggered withdrawal, where you can withdraw less and less each hour really helps kind of avoid that situation. I think the only other thing to mention is that you can only make one withdrawal during that last 24 hour period as well. So it’s not like you can withdraw a little bit then a little bit more than a little bit more. It’s one withdrawal only per wallet during that period.
Rebel Defi 12:19
Absolutely. And I think as you see, yeah, I thought Hyperion did a great job of explaining why Prism have decided to sort of take these steps. And I can’t imagine that whales are gonna sort of up to too many games, because it doesn’t seem… With the steps that are in place, it doesn’t seem really possible to game the system.
The only thing that I’ve thought about in terms of how people could game this if they really wanted to, would be maybe to have multiple wallets with large amounts, and then withdraw large amounts in our one of day five, but I personally don’t think that much of that will happen.
Rebel Defi 13:02
And then so I suppose if I’ve already decided to put in $1,000, if people are withdrawing, I mean, that only benefits me.
Rebel Defi 13:11
Yeah. So I’m..
Yeah I mean, when I was thinking about my own personal investment strategy for Prism, I probably overthought it initially. I think probably what I’ll do, personally, is I’ll decide is there an amount of UST that I want to invest and I’ll probably just put it in there and just leave it and see what happens. Unless, as you say, the price gets to a ridiculously high price.
Rebel Defi 13:12
Exactly. I mean, I don’t really know exactly what is a ridiculously high price. But I just want to have some PRISM, I think. Initially, I was thinking I’ll maybe just… I want to use PRISM. I mean, I’m more excited maybe to use PRISM than hold PRISM. But I’m actually getting super excited about holding PRISM, and then staking. I think that’s just going to be a really good play for me. And so… Is someone gonna jump in?
Yeah. Hey, it’s Jimmy. Yeah, I just wanted to just chime in and mention some of the design around the tokenomics, the emissions, and this first Phase of the launch has really learned a lot from all of the other Terra alt launches, especially for Astroport. And some of the, I guess, the good things and bad things about Astroport. And we really tried to just simplify the launch as much as possible, right. And there’s no… We’re not a DEX. Well, we’re not trying to just attract only LPs, right. Our primary focus is to be refracting tokens. So we don’t have this idea of incentivizing liquidity, large liquidity providers with bunch of PRISM tokens and having a large emissions of PRISM tokens to bring people to, essentially, LP any of these pairs, it really is quite simple. You just deposit UST and everyone gets the same price at the end of day five, right. You don’t have to think too much about the tokenomics, or venture capitalists who will dump on you if they have any, TGE that’s gonna be released to them at the beginning, there’s none of that, right. And like you alluded to earlier as well, there’s no airdrops. And we know what happened to a lot of these other protocols when airdrops were announced or airdrops were claimable, and we saw a crazy price action happen for airdrops for Astroport were available, airdrops for Valkyrie were available. It’s nice as a LUNA holder, but then it becomes very volatile for the actual participants in that particular protocol, right.
So the alternative now is like, okay, you’re not going to get airdrops for being a passive LUNA holder, or LUNA staker. But if you go through the Prism launch, and you find your way, you get your hands on some yLUNA and you stake it in the yLUNA farm, so that’s essentially the alternative to the airdrop. We’re rewarding folks that participate and hold and stake yLUNA with the protocol itself.
Rebel Defi 16:26
Yeah, I think I mean, when we get to stage three, and then start to see how market is pricing p and y LUNA, I think that’s going to be so exciting. I mean, I’ve been thinking about going all into pLUNA, or all into yLUNA, but I mean, I don’t think… Well, certainly I can’t decide what I’m going to do yet until I see the the relative pricing.
Yeah, no, there’s a lot of discussion around how things are priced on… And folks bringing in the composability, and the utility of these additional DeFi tokens and their components. And it’s just a lot of fun to just hear everyone’s kind of thoughts. And I don’t think anyone is particularly wrong in any sense. It’s just new, different, it’s a new primitive for the Terra ecosystem.
Rebel Defi 17:18
But certainly last night, I remember Ryan was reeling you in about becoming too much of an imaginor on the call. So I think we’ve sort of gone over Phase One. But would anyone like to ask Jimmy, Ryan, anything about Phase One before we get too carried away with refracting?
Frugal Lunatic 17:37
Can I ask a question if I’m audible?
Rebel Defi 17:40
Yep. Can you guys hear him? Frugal, Frugal, hi,
Frugal Lunatic 17:46
Yeah, it’s Frugal. So the question was is there a realistic price that we could achieve after Phase One? So you said, if it reaches $5 then you might pull out some of your UST or something like that. But for that to happen, if there’s 70 million tokens, and if the price is $5, that means five times of 70 million was deposited, so 350 million or something? So do we know from past projects or something what could be the ideal amount that would be submitted? And then based on that we can kind of see what is the price that we could look at?
Rebel Defi 18:33
I mean, personally, I’m thinking around about $3. I have no idea. I don’t know.
Same. I have no idea. We have no idea what the market will price the PRISM token at and with the tool that I kind of created that I pinned on my Twitter account, it kind of helps folks kind of just gauge their assumptions, right. The price of PRISM, the value of rule of PRISM, what you could expect the APR to be, right. If the PRISM token was priced at $5, that would mean that the revenue coming from all the value accrual methods needs to be quite high for you to achieve any kind of significant single staking APR figure for xPRISM, right? Whereas if the price of PRISM was low relative to its value capture, then you could see the APRs for a single staking xPRISM go quite high, right. And then the market will kind of decide, okay, based on the value accrual of PRISM, what am I happy paying for PRISM and staking PRISM? And I think for everyone, that number is a little bit different, right. If you’re a total degenerate and you only like six figure APRs and that’s it, then this probably won’t be for you, right. But if you’re happy with 20%, or 30% APR based on your assumptions, maybe it works for you. But yeah, so I don’t think any of us really knows for sure what’s too high of a price. I think it depends on a lot of things. And I hope the tool that I made will kind of help you to kind of gauge and guesstimate what the numbers will kind of land at.
And to kind of help you guys out too, we’re really impressed by some of the folks over at Flipside Crypto and their Discord is called The Cantina where a bunch of these bounty hunters hang out. And so we’ve kind of engaged with them to instead of doing a post mortem of, oh, what happened during Astroport launch, or what happened during the Phase Two or Phase One, we’ve kind of given them the tools and the queries and the contracts they need to build out these, I guess, real time data dashboards, to show, alright, how much… Not only how much UST is being deposited, but when, and say, what’s your average wallet that’s depositing, are people withdrawing. So giving you all these data points during that Phase One during the first four days, and especially on the last day as well, where you can kind of start to see are people withdrawing a lot, are they’re depositing a lot, when is that happening, to give you some better insights to make a decision for yourself as well.
Rebel Defi 21:42
That sounds pretty awesome. And do we have to join the Flipside Crypto Discord to have access to that.
No, I think they’ll be making that dashboard available on their website. So
Rebel Defi 21:53
Yeah. So it’ll be as live as their table is update.
Speaker 1 21:59
Can I ask a clarifying question?
Rebel Defi 22:03
Speaker 1 22:04
Yeah. So on the 25th, the first Phase, when we deposit our UST are we getting a PRISM token in return? And on day five, is it the PRISM token we can withdraw or we are withdrawing the UST?
Rebel Defi 22:25
Do you want to go for this one, Jimmy, just so it’s the 100% accurate information?
Yeah, so for the first four days you can deposit and withdraw UST as much as you’d like, right. But on that final day, you’re only going to be able to withdraw UST one time. And the amount of UST that you can withdraw that one time decreases as the day goes on, all the way down to zero. And at the end of the first Phase, all five days, the timers are all over, then you’ll be able to redeem the amount of PRISM relative to the amount of UST that’s in the pool. So everyone will get the same price for the PRISM token and the amount of PRISM tokens that you’ll receive is just based on how much UST that you deposited. You will not be receiving any UST back after the timer has ended.
Rebel Defi 23:25
We are… Sorry, carry on.
Speaker 1 23:28
So basically, the exact amount of UST I deposited is the exact amount I’ll be able to withdraw at the 5th day?
In PRISM value. So at the very last day you won’t be able to receive… No more UST will be able to be withdrawn. Once the timer’s are all over, you’ll only be receiving PRISM.
Speaker 1 23:49
Okay, got it. So hopefully the price of PRISM would have increased within the five days. So I’ll probably have made profits on my UST. That’s what it means, right?
So there won’t be any kind of profit or loss. Everyone will be getting the same price.
Yes. So just to clarify and put it in simple terms, right. So there’s 70 million PRISM available. If after the end of day five, let’s just say there’s 70 million UST in the pool. That means that everyone who contributed would be getting the exact same price of $1 per PRISM. So if you’ve put $100 in, you’d get 100 PRISM, $1,000 you’d get 1,000 PRISM, everyone would get the same price per PRISM.
Speaker 1 24:36
Okay, got it.
Rebel Defi 24:38
And I think that sort of leads on quite nicely to the next
Can just add one little thing to discussion that you were having around price. I don’t want to speculate too much on what the price is. I think I’d be really shocked if we were able to get to a $3 or $5 PRISM as you guys were discussing, because think that’s a lot of UST that would be flowing in. But who knows, I mean, I think Astroport did get a large amount. But I just wanted to point to an article on the Notion, if you can go there Rebel, there’s really good article by someone who’s in the GT Capital Group, if you scroll down… Where’s the article, so scroll up a little bit, sorry. You got a slightly different view to me. There’s an article called “Prism, what’s it worth?” And it’s an article by someone who works in TradFi, he’s done a lot of analysis in terms of the potential yield of PRISM, the potential revenue generated, and how that might relate to market cap and token price. That’s a really good read, for anyone who’s maybe not too sure about what might be a good price or market cap for PRISM.
And I’ll even add, there are parts of my tool that’s missing from this article, and vice versa, right. I think there are so many value accrual methods that the protocol lends itself to being able to charge fees that I think… And it’s so expansible too, right. And we’re only… All of these, all of these fees that we’re kind of speculating on is only on yLUNA, as well as yETH, right. But the scope can be quite expansive. For all these other proof of stake assets, and being able to bridge assets over from Wormhole and IBC, to be able to refract. I think the prospects and the future roadmap is going to be pretty thick for the protocol.
Speaker 1 27:01
Also, another question, would there be any benefits for me if I do not withdraw my UST on the fifth day, so I keep it on and on?
Rebel Defi 27:11
Right, just so we’re clear, ’cause my understanding of the… So we are putting UST into a pool. And with that UST we are going to get PRISM tokens. If you withdraw your UST, you don’t get PRISM tokens. So if you want PRISM tokens, you leave them in. And then at the end of the fifth day, Prism keeps your money and you get PRISM tokens. That’s my understanding of what we’re doing. There would be no reason to take your UST back unless you don’t want to play the game. So if you’re thinking of taking your UST back, I would just not put it in.
Speaker 1 27:53
Okay, got it, it’s clearer now.
Rebel Defi 27:55
Does that make sense, like Prism Forge is about us buying PRISM tokens. At the moment, we don’t know the price of the PRISM tokens because we don’t know how much UST is going into the Prism Forge.
Speaker 1 28:10
So basically, this is just about price discovery, I will say.
Rebel Defi 28:13
100%. Yeah. And what’s beautiful about it, and what Ryan and Jimmy have said is that no one’s getting airdrops, there’s no venture capitalists that are going to just dump on us as soon as the token price goes live, or as soon as the token goes live. So if the price of PRISM in Prism Forge is sort of discovered to be $1, when PRISM goes live, it’ll be trading $1. And personally, I think it will… If I put in money and bought PRISM tokens at $1, I’m not going to sell them at $1. Only way I would be selling these tokens as if there’s a massive spike in price. But that’s not really my plan anyway.
Speaker 1 29:02
Yeah, because I was thinking why would anybody want to remove his UST.
Rebel Defi 29:08
100%, I don’t know what that was.
Speaker 1 29:10
Yeah, I was thinking, Well, anybody wants to remove their UST at the end of fifth day anyway.
Rebel Defi 29:15
Yeah, yeah. One thing I wonderm I don’t know if Ryan or Jimmy can help us with but there’s the 70 million Prism tokens that are going to be sold in Prism Forge, and then they will go to individuals who’ve bought the PRISM tokens. But then as soon as that period is finished, when we move into stage two, there’s going to be a PRISM-UST pool. So do we know how many PRISM tokens are going into that pool?
So Jimmy can jump in if I get in wrong here, but I think… So the UST that’s been raised during the Forge event will ultimately go to seeding all the seven liquidity pools that are going to be on the Prism Swap AMM. The PRISM on the other side of those LPs will come from the Treasury allocation. So I think that’s 20% of tokens that are in the treasury. I think it’s to be confirmed how much PRISM from the Treasury and we’ll go into seeding the liquidity pools because I think we’re essentially waiting on what will be the price of PRISM before determining how much of the PRISM goes into the liquidity pools.
Yeah, I think that’s absolutely right. Yeah, we just don’t know the price of PRISM. And we don’t know the price of LUNA that’s going to be… The amount of LUNA and the price of LUNA at the time that PRISM will be paired with all of the LPs. So yeah, I think we’ll be on the lookout for that on the exact amount of tokens and liquidity as we get a little bit closer to Phase Two and Phase Three.
Rebel Defi 31:05
Awesome. I was wondering, Ryan, you might have an image that you could share. It’s apparently public. But I have not seen it, I don’t think. So this is a screenshot of Prism Forge may look like or something?
I think Hyperion threw some in the Orbital chat with you guys.
Rebel Defi 31:31
And you’d like to share these?
Yes. Although you might want to stop sharing your screen while you go grab them.
Rebel Defi 31:38
I think when people see the screenshots it will…
Rebel Defi 31:46
Having a quick scroll through. And can you sort of talk us through what these screenshots are just while I’m searching? I’ve got it. I think yeah, Hyperion, shared them on Twitter. So they’re definitely in the public domain. Oh, wow, it looks pretty epic. In fact, I’ll just share this tweet. So it’s a tweet from January the 16th. So yeah, certainly been out for a little while.
Speaker 2 32:11
Hey, guys, I just hopped on. Did I miss the talk?
Rebel Defi 32:17
Yeah, kind of. But we’re doing a sort of Q&A, and we’re sort of rounding things off. So if you’ve got questions, you’re more than welcome to shoot them. I mean, it will be going up, maybe an edited version will be going up on to YouTube.
Speaker 2 32:29
Oh okay, great. Yeah, my main question is just around borrowing against the LUNA using Prism, and how that would work to leverage my LUNA to get more LUNA basically. I mean, kind of looking for alternatives, potentially, to Anchor if the interest rate is going to stay at -4%. Wondering if there’s a better way, basically, using Prism. So I don’t have to pay as much.
Rebel Defi 33:02
You’ve definitely not missed that part of the call. All we’ve talked about so far is really just the stage one, Prism Forge, and swapping our UST to get PRISM tokens.
Speaker 2 33:14
Oh, got it.
Rebel Defi 33:15
There’s lots of more advanced stuff coming out over the coming week. And before the launch event, so I mean, I think on these Discord calls, we’re gonna sort of just go through slowly, some of the different things that we can do. Jimmy has one maybe later in the week. Have you and danku decided what you’re talking about?
Yeah, we’re going to be going through… I’m sure we’ll do like an overview. But for the most part we’re going to dive a bit deeper into a dashboard tool that I’ve created to help people kind of get an idea of what numbers should go on these assumptions. So they can kind of plan out at what dollar value does PRISM make sense for them based on their assumptions, and based on the amount of value accrual back to PRISM and xPRISM.
Rebel Defi 34:09
Awesome. So there’s still plenty, plenty of stuff, plenty of opportunities to learn the more advanced stuff. But yeah, this is a screenshot that Ryan had been talking about. That looks pretty exciting. And have you guys, Ryan and Jimmy, have you played around on a sort of testnet with this stuff? That’s something you could share?
Yeah, I can personally say that I’ve played around with the testnet. We’ve sped up this initial phase, where it’s only a day or two for each one rather than the entire time period, and just made sure everything works. You can deposit UST, you can withdraw USD. And at the end, you can redeem your PRISM tokens. So yeah, we’ve just been playing around with it and given our feedback to the design and engineering team.
Rebel Defi 35:00
Awesome, I mean, just looking at this screenshot, it looks super clean, super easy to use, which is the kind of vibe I’m getting from Prism, which…
Yeah I think it’s gonna be really simple here. You can see on this screenshot, its going to show you how much UST you’ve deposited, what the current price of PRISM is based on the total amount of UST in the vault, and the expected amount of PRISM that you’ll receive. Hopefully, when people see this and start to interact with it, everything will be clear and it’ll make sense.
Rebel Defi 35:34
100%. Yeah. Any of the other guys from Orbital Command got any comments that you’d like to share just now? Or anyone else with a question?
I’ve got a question. I was curious… And Prism seems like a pretty foundational protocol, kind of like Anchor. And the great thing about DeFi is protocols can build on top of each other. There’s some things about DeFi that can be frustrating, the wallet and all that rigmarole. But I think why I’m bullish on DeFi is because of that fact that multiple protocols can build on top of each other, have you guys thought about who might build on top of Prism? I mean, maybe Pylon, or Angel, or some of these others that depend on stable yield, or anything else we haven’t even thought about?
Yeah, I’ve got some ideas. So I think we’ve seen some success with Apollo DAO’s community farming event, right. Where you essentially give up your LP incentives in exchange for some token that’s launching or launching soon, and that’s looking to raise money. Apollo did that for their own token. And then Angel Protocol also did that with their HALO token. Those were quite successful, and raised a lot of money for them. I think the biggest drawback for the community farming event with regular LP tokens is that you kind of subject yourself to quite a bit of price action, impermanent loss when the community forming event is going on, right. I think, what we saw with Apollo, I think the MINE token and the ANC token just went straight through the roof, because people were so excited about getting their hands on these Apollo tokens. And those LP pairs offered the highest yield. So yeah, it was “lossless” farming, but still, you had risks associated with just holding LP position. I think the cool part about the Prism farm is that it’ll allow you to use just the staking yield from yLUNA or yETH to essentially purchase these tokens in a farming event.
But I think in the future, it’d be really cool too, when we start refracting LP tokens themselves, right. So there’s a portion of the LP token that just represents the tokens and you’re subject to impairment loss with the principle of the LP tokens. And then you have the yield portion of these LP tokens that accrue all of the swap fees and accrue all of the incentives of a normal LP position, but it does not have impermanent loss. So I imagine this Prism farm to be incredibly interesting with folks who want to farm tokens in a way that doesn’t subject you to any impermanent loss. I think that would be really cool to kind of see. And then the other thing that I’m super interested in combining these DeFi building blocks is using yLUNA in conjunction with Kinetic Money, right. And I think most people understand that Kinetic Money allows you to just take a loan based on your UST deposits, and that loan is being automatically repaid by the UST going to work on Anchor, or going to work in other money market yield generating events. But the unique thing that we have on Terra that other chains don’t is that our staking rewards from LUNA can be natively mint… We can natively mint them back to UST and accelerate the rate in which our loans are being repaid on Kinetic Money by staking our yLUNA with Kinetic Money. I think those are the two that I’m most interested in checking out and seeing come to fruition in the near future. But of course, who knows what the landscape will look like six months, a year from now, but I’m definitely excited on working with other teams and partnering up with them and collaborating to just extend the usability of these yield and principle tokens.
Wow, that’s awesome. Yeah, not having to worry about impermanent loss with your LP tokens and accelerating self-repaying loans to very amazing options there. So that’s awesome. That’s awesome.
Yeah, I would echo what you said, Joseph, but I see Prism as one of these kind of base layer protocols on Terra, probably alongside Anchor and Mirror, that people can build upon and utilize the new asset classes that have been created to work in other protocols. So it’s not beyond the realms to think of something like yLUNA as collateral in Anchor, to think of maybe a 2xpLUNA token in Levana Protocol, to think about, as Jimmy was saying about yLUNA pools within Prism Protocol, to think… There’s so many possibilities.
Rebel Defi 41:03
Nice. That was interesting, guys. Thank you for that discussion. I mean, I’d love to jump in and carry on talking about Kinetic Money, but maybe I should try and keep it focused on Prism for now. When you were telling us about these ideas, Jimmy, one thing that popped into my mind is do you… I mean, I know, you were announced as being now a part of Prism, does your role… Can you tell us more about what your role actually is? Or it your role basically wherever you want it to be? If it’s not too personal.
Yeah, no, it’s definitely not too personal. I think I’m able to just like “be myself” in this role, right, and focus my energy and efforts around Prism and extending the usability of Prism. I think previously, behind the scenes at GT Capital, a lot of my efforts were spread out across many different protocols, and advising them behind the scenes on many different things from market strategies, and tokenomics, and usability, and just having them understand the landscape. But, joining Prism Protocol allows me to essentially just focus all those efforts obviously on one protocol. Yeah, just do a bit of everything. I wear a bunch of hats, maybe it’s business development one day, and partnerships one day, making memes another day, doing threads just doing partnerships behind the scenes. Yeah, it’s a lot and it’s fun. And if the role was a bit too defined any way, I think I would be uninterested. So I think this early on, it gives me a lot of flexibility to do a lot of things, wear a lot of hats, and just, at any given time, just focus on whatever’s best for the protocol.
Rebel Defi 42:58
Sure. Also, it’s great to hear you still get to wear the memelord hat, so that’s great. Would anyone else like to jump in with a question about the sort of the begin… Well, not the beginnings, but the Prism Forge part of the Prism token launch? If not, maybe we could just call it here. I know Ryan and Jimmy are going to be busy later tonight, I’m definitely going to be listening in to the Galactic Punks call myself as a holder and just as an interested party. Zion are you hear? Have you got anything you’d like to add?
No, I think this has been great. I mean, you guys gave a fantastic overview of Phase One, and also some additional insights. And so yeah, I think it’s good.
Rebel Defi 43:42
Awesome. Well, I mean, we certainly will be doing more of these. And certainly once Prism Forge is launched, the screen sharing platform, I think it could be quite good on Discord just to sort of go through a live, show people who are getting up to.
One other thing I would add is once Phase Two and Phase Three start going, I think Phase Three is really the big phase, right? This is where you can stake your PRISM for xPRISM, this is where you can refract your LUNA into pLUNA and yLUNA, this is limit order time, this is liquidity pool time, this is… A lot of different, really cool implementations for this launch for Prism will be happening in Phase Three. So we’ll definitely be doing a screen sharing event for that, if not multiple, to talk through… There’s a lot to unpack there for that one. So, I think that will be one where we do a couple of these types of events with screensharing.
Rebel Defi 44:40
100%. And I think it’d be so interesting, just watching the relative pricing of p and y LUNA changing live in front of our eyes.
Rebel Defi 44:51
One final question for Jimmy or Ryan, just so I’ve got this straight in my head. The limit ordersm we’ll be able to put limit orders on the Prism platform using aUST, is that right?
Yeah, absolutely right. So yeah, the details I’m not totally sure about because I’m thinking that if you have some aUST that you deposit and maybe you set some ridiculous candle for a LUNA buy. Maybe you want to buy LUNA at $50 and you don’t mind waiting a whole year for that, you just deposit some aUST in there. So I think to me it should mean that, say six months, in your buy for $50 LUNA would grow X amount, but then the longer that you have the aUST in there, the more LUNA you would be able to buy, right, at that given price. So yeah, I’m definitely curious to see a little bit more like the documentation that’s coming out, so we can dive into the details about the limit orders as well.
Yeah. And just to add, so essentially, my understanding is that you’ll be able to leave limit orders between any of the seven, was it seven or eight tokens, that are on the Prism AMM. So for example, if you wanted to swap LUNA to cLUNA and you’re waiting for maybe a dip in cLUNA, like you do LUNA to bLUNA, maybe you’re waiting for a 3%-5% dip, then you could leave an order that’s looking for a 5% dip in cLUNA, for example. So there’s many different options for those limit orders.
Rebel Defi 46:51
Absolutely. That was funny. Sorry, Ryan. When you came back on speaking, I was looking for. I was like, “Where’s Ryan? Where’s Ryan?” And I just saw this little green toad flashing up. What is that NFT you’ve got?
Oh, it’s a Space Toad. I don’t use Discord very much so I think Space Toadz was a Galactic Punk’s stealth launch a few months back. So yeah, it was my display picture and I haven’t changed it since.
Rebel Defi 47:20
It looks cool. Looks rare. Alright guys. Well, thank you everyone for being on. Thank you, Jimmy, thank you, Ryan for attending. Thanks, everyone, for dropping in. Hopefully you’ve learned a little bit more about the Prism Forge stage one launch and stay in touch with Prism on Twitter. We’ll all see as well. We’ve got some stuff coming out regarding future events. And then tonight in about two hours time, I believe there’s a Galactic Punks AMA with Prism people, Hyperion, Jimmy, Ryan, you both on this as well, yeah?
We’ll be dropping in.
Rebel Defi 47:51
Okay, awesome. So thanks for coming, guys. We’ll speak to you soon.
Thanks, Rebel, thanks, OC, love your work.
Take care. Bye.
Rebel Defi 47:57
Thanks for checking out another episode of The Ether. That was a Prism discussion hosted in the Orbital Command Terra Investment Strategies Discord server. Recorded on Wednesday, January 19th 2022. This episode of The Ether is brought to you by Talis. Talis is the NFT marketplace on Terra built for artists by artists. Find all the hottest one of one NFT side by side with all your favorite larger collections. Be sure to check out some of the new features on Talis like the Verified Artist badge. Always know the NFT you’re bidding on or buying is the real deal by checking for that Verified Artists badge found on the collection profile. Check out all the cool art on Terra by going to talis.art today. TerraSpaces appreciates their support. For terraspaces.org, I’m Finn. Thanks for listening.