Transcript: Prism Farm Launch Event

Prism Protocol

Finn 0:42
Hello and welcome to The Ether. Today is Monday, March 7th 2022. This episode if The Ether is brought to you by Orbital Command, a community validator on Terra dedicated to educating, expanding, and promoting the LUNAtic community. Follow Orbital Command on Twitter using the link in the show notes to receive regular threads on Terra protocols and yield strategies, news, resources, and Twitter Space discussions. You can also support their community efforts by considering them next time you’re delegating or redelegating your LUNA. Find out more at This episode of The Ether is also brought to you by Talis. Talis Protocol is the NFT platform for independent artists on Terra. Talis helps to provide artists with the tools and resources needed to transition from traditional arts into the NFT world. With their V1 launch coming soon, Talis will be the place to see real world art reflected on Terra. Be sure to join their Telegram and follow Talis on Twitter for updates on their roadmap, validator, and other Talis news. Find your next favorite artist on TerraSpaces appreciates the support from all our sponsors. Today on The Ether the Prism Farm Launch AMA. Let’s take a listen.

MrRefractor 1:53
We’ll just give it a couple more minutes for people to join and then we’ll get cracking.

lejimmy 1:59
Hello, hello, hello. We’ve got requests already. So let’s add some people up.

BadCrypto Bandit 2:05
Oh, wait, I’m sorry. BadCrypto here, did you… Yeah, you did let me get in right. Can you guys hear me?

lejimmy 2:13
Yeah, yeah, yeah. How’s it going ser?

BadCrypto Bandit 2:15
Yeah, thanks for taking my call. First off, congratulations on the Farm, looks like things are rolling along. Can’t say that about Mars. But it’s pretty exciting. I guess my question is, I’m looking at the yLUNA and pLUNA spread. And would you say the yLUNA is more expensive now because people are just getting into yLUNA obviously for the Prism Farm?

MrRefractor 2:43
I think a lot of people are buying yLUNA or refracting their LUNA into y and p, and then selling their pLUNA which is kind of putting downward pressure and putting more weight onto the pLUNA as people buy more yLUNA. I expect that to find a clearing level level and this is probably… Obviously not financial advice, but this is probably the strongest time for yLUNA, as you see a huge amount of demand come in for the Farm. So naturally that pushes pressure on pLUNA. But it’ll be interesting to see where that kind of normalizes once the APR has stabilized a little bit on the Farm.

BadCrypto Bandit 3:35
Right on, right on. Well, it sounds like there’s an opportunity here. So I’m gonna go ahead and get me some pLUNA.

MrRefractor 3:44
[chuckle] Do joined the pLUNA DAO on Telegram. I like that.

BadCrypto Bandit 3:50
Anyways, guys, congratulations. Thank you for answering my question.

MrRefractor 3:55
No worries at all, thank you.

BadCrypto Bandit 3:56
Appreciate it.

lejimmy 3:57
Xulian? Xulian, up to the stage. What questions do you have for us?

xulian 4:01
Hye, thanks very much, guys. Yeah, I was just trying to catch up with the xPRISM and I was looking at the Farms and everything. Right now if I’m just holding the LUNA, what would be kind of the best way to get into the Farms and just get started with everything?

lejimmy 4:17
Yeah, good question. So let me jump on the platform right now, see if we can actually find you some deals as well. So if I have just naked LUNA right now, you have a couple of options. You can go to the Refract page, and you can split either regular LUNA or you can split cLUNA. So we’ll just look at the swap rate for… The cLUNA right now is just a little bit cheaper. So if you have LUNA, you can swap… Let’s see 10 LUNA will give you… It’s thinking…

MrRefractor 4:54
I’d say the easiest way, for your first time interacting with the protocol, I’d say your best bet is just to take your LUNA very simply and head into the Refract tab on the platform, put your LUNA in. And then you can just click accept and split. And it’ll split it into pLUNA and yLUNA. And then all you need to do is head to the Staking tab and go on the Prism Farm. And then you can just drop your yLUNA in there and keep your pLUNA in your wallet. And that is the safest option to start off with and the simplest. And we put a little step-by-step guide with the links to each of the pages on our Notion page.

lejimmy 5:38
Yeah, that’s right, there’s a little Learn More button at the top too, for you to go step-by-step and get through. But right now the swap rates are so close that you might even lose money if you try to go straight to cLUNA. So definitely refract your LUNA and then go on to the Staking page.

xulian 5:56
Okay, awesome. And I know that this APR is different from the other one that has been popping up lately that people are so excited about, kind of what’s the difference between that other one that has 2,000 APR versus these ones that have about 100?

lejimmy 6:15
Yeah, so this is our AMPS, our AMPing vault. So if you go to the Govern tab, you’re also going to see an AMPS vault where you can pledge your xPRISM. By pledging xPRISM, you’re going to earn AMPS over time. And essentially, if you have AMPS, you’re going to get a additional boost on the Prism Farm. So it just encourages people to hold and commit their xPRISM as well as participating in the yLUNA farm.

xulian 6:45
Awesome. Thanks for clearing that up.

lejimmy 6:48
No, thanks for your questions. Anything else?

xulian 6:51
Oh, that’s it for now. Thanks.

lejimmy 6:52
All right, cool. Let’s get John M.

invisible HEX 6:56
Hey, how’s it going, guys?

MrRefractor 6:58
Not too bad. Thanks. How are you getting on?

invisible HEX 6:59
Yeah, doing good. So my question is, I heard about in the future, there’s gonna be a pLUNA that has a certain date, and then turns into LUNA, some kind of limited yield time with the yLUNA, is that true? And do you know when that’s coming out?

MrRefractor 7:20
Yes, so we have… So we’re going to build assets with maturities. So what would happen is, say for example, a LUNA one year contract would mean you split your LUNA into yLUNA and pLUNA. And for the duration of one year, your yLUNA gives you all the yield of one LUNA. And then at the end of the year, you can use your pLUNA to go and claim back one original LUNA. So that means that obviously as the y LUNA heads towards the end of the year, the value of the yield that it’s going to receive… Because after a year it receives no yield. So its value will converge to zero over time, as all the yield that you’re owed gets paid out. And then conversely, the pLUNA token as it heads towards maturity will head towards the price of one LUNA because at the maturity that gives you the right to redeem your one LUNA from the vault. And then timeline timeline wise, that’s on our roadmap and something that we’re very excited about, I mean, hard to give exact timelines with auditors and that kind of stuff. But it’s something we’re excited to get out there and something that was in the original vision for the protocol. So definitely a big focus. And LUNA and UST are two very interesting targets for us that we want to build out.

invisible HEX 9:01
Right? Yeah, the aUST ones, splitting that and that’d be very interesting to see how that all works out and like how much they value the 19% of that year, but ahead of time, like how much of a discount that turns? That’ll be interesting, for sure. Definitely looking forward to it. Thanks for answering my question.

lejimmy 9:20
All right, let me get Mr. ShareWizard up here. ShareWizard, you’re on the stage.

ShareWizard 9:28
Hey, guys. First of all, congratulations on today. It’s a lot of fun to be the community and see everything working pretty smoothly to be honest. This might not be the most constructive question to answer now but I want to ask it anyway. I’m just curious to hear how you would think from what you predicted would happen pre Prism launch with the relationship between p and y LUNA and PRISM xPRISM, if you had to reflect back on what you learned versus what you kind of speculate would happen what do you feel like are your personal takes on what you predicted and maybe some things that surprised you?

MrRefractor 10:16
Sorry, and you were asking on PRISM-xPRISM as well?

ShareWizard 10:19
Yeah, I think so, in terms of what the market has kind of value, and what you predicted they would value?

MrRefractor 10:26
Well, I mean, PRISM and xPRISM, the value between them is a very clear thing that can get arbitraged away if it ever deviates from the fair exchange rate. So it’s like the relationship between UST and aUST, if there’s a UST-aUST pool, like there is on Loop, if that trades, away from the exchange rate, it’s a very easy arbitrage for people. So xPRISM-PRISM’s performing exactly as it should. Anytime it deviates from the fair exchange rate, it gets arbitraged away. On yLUNA and pLUNA, I think it’s really been interesting, we wanted to steer clear of a model where we set the rates, and we set the relative prices for those and we wanted the market to… As I think is right, the market should determine the prices of these different assets. And so, the feedback the community has given on polls was that they thought it was going to be very, very heavily skewed pLUNA being valued a lot more highly than yLUNA. It’s interesting to see, obviously, the way that it’s worked out. I mean, maybe, I think without applying too much… I don’t want to skew things with my own personal views on it. But I mean, there’s some really interesting things coming down the road for pLUNA, some of which I think have been great community ideas since we launched, and some of which is stuff that was telegraphed in the litepaper back in August last year. And so the market is now deciding where it values governance, where it values a token like pLUNA that can offer you this kind of leveraged exposure potentially without liquidation risk, and where pLUNA should be valued, if it can be in a liquidity pool earning you 8%, 10%, 12% yield.

MrRefractor 12:47
So all the different utilities for it, the market is now asking… Has to ask itself questions about what’s the right price to value it at. So, I think at the moment it’s a really strong time for yLUNA because of the farming event, but it’ll be interesting as more features get out for pLUNA, such as governance, where the market ends up ultimately valuing those. And to my knowledge, it’s the first time any protocols had to… Or the market has had to ask itself these questions about where to value assets like this, perpetual assets like this. And so the protocol is a couple of weeks old, the market is still in its infancy. And it’s definitely going to be interesting to see where things settle as things mature. And particularly, I think it’ll be really interesting when we start seeing some big, big price moves in LUNA, it’ll be interesting to see how the market for these two assets responds.

ShareWizard 13:49
Yeah, I really appreciate that answer. And yeah, it’s been really, really cool just as a student to watch this experiment play out. This is one of the freest markets being watched in real time, with changes coming to, like you said, the utility of both of these tokens and, I don’t know, just a really cool thing to be a part of. So well done. Thank you.

MrRefractor 14:13
Thanks very much. Appreciate it.

aspect 14:15
Hello, I have a question actually. I’m a noob. I have a Binance account and I need to enter into Prism… Not Prism, the LUNA ecosystem, and buy LUNA, and also yLUNA and pLUNA, and get to explore this. So can somebody quickly tell how to… So I’m from India, so I may not use many other apps. So I’m only using Binance for now. So yeah, if you can help me, so that would help.

MrRefractor 14:52
We actually put together a guide with XDEFI, a wallet provider on Terra. And I’ll check if it’s still live on our Notion page. If not check back in a few hours and I’ll make sure it’s up there. But it is a guide with videos that shows you exactly how to get from Binance on to Terra, how to set up a Terra wallet and how to interact with Prism and buy yLUNA and pLUNA. So that’d be your best bet. And it’s really, really clear instructions so check back on our Resources page that’s linked in our header in our Twitter bio. And we’ll make sure it’s there for you shortly.

lejimmy 15:40
And just to add something a little bit newer after that resource was created, I think I heard a lot of good things about the Kado Ramp, like onramp that’s really cheap way to turn USD into UST and then a lot of the stuff on the Resources page is very similar on how to get PRISM, how to get yLUNA, etcetera.

aspect 16:05
So what did you say? Kado Ramp?

lejimmy 16:08
Yes, so Kado Ramp, it’s K-A-D-O. I’ve heard some really good things about it. And I think there’s only a $2 fee for, I don’t know, no matter what the onramp amount is. So it’s really awesome.

aspect 16:23
Okay, thanks, folks. I will check this out. Appreciate it.

lejimmy 16:28
Okay. Thank you for your question, sir. Anyone else in the audience have some questions, please raise your hand. We’re covering our new Prism Farm launch. And we’re seeing some wild swings in the yLUNA APRs, I think we started off in the couple of thousands, but it’s coming down to somewhat more reasonable levels, but we’re still in the hundreds of percent APR.

SJ Park 16:55
Hey, team. I think this is a very good coin. Not financial advice. But [chuckle] for the core team, I’m curious, what are you guys most excited about in the roadmap? I feel like we’ve kind of been properly anticipating the Farm event. But whether it be for the pLUNA DAO or just in general for the product roadmap, curious to see what you’re most pumped about.

lejimmy 17:29
SJ, I just want to note that I saw the pLUNA DAO in here, and then they left, and then you joined. I’m just gonna just put that out there.

MrRefractor 17:40
[chuckle] I knew it. I knew it. [chuckle]

SJ Park 17:42
My heart is with the pLUNA DAO.

MrRefractor 17:43
Oh, busted and doxxed. Wel, thank you very much for the questions, SJ. So now we’ve got phase four out of the way, which I think is the biggest phase for Prism and for xPRISM holders, because it really means that people who come and use the protocol can now become token holders of the protocol just by using it and really aligns TVL with ownership of the protocol and sharing the revenues that the protocol generates. So that’s pretty exciting to get out there. And then next steps for us are finishing off some of the smaller details of V1, which are things like limit orders, which we’re very excited to get out to allow people to leave limit orders on Prism Swap to start off with. And we’re going to be adding more liquidity to the pools. So those are those are going to become deeper and larger trades are going to be possible with less slippage. And then I think we are also partnering up with Coinhall who are going to use our limit order smart contracts to allow you to leave limit orders on Astroport, or on TerraSwap, or on Loop potentially. So that’s exciting. And then I think longer term, LP token refracting, refracting bAssets, and then maturing assets. So you could sell a one year LUNA yield token if you wanted to raise some money against your LUNA, or you could have some UST and you could decide to sell a year’s worth of your UST yield to get some money up front rather than having to wait a year for the full yield to be paid out. And then you’re also able to kind of like speculate on interest rates or fix your interest rates. So those are some of the main features that we’re really excited about.

MrRefractor 19:49
And then apart from that, I think the AMPS contract has spawned a lot of really interesting conversations with other protocols that want to build on top of Prism. And now we’ve created these building blocks, I think it’s going to be pretty exciting to see how all the protocols end up using y and p LUNA and how other protocols end up amassing AMPS to allow people to drop their yLUNA in and get extra yield without having necessarily to have AMPS themselves. So a lot of clear stuff on our roadmap, but a lot of stuff that… It’s going to be interesting to see what happens and relies on working with other partners as well.

lejimmy 20:35
Yeah, I think like the collaborations and partnerships are what makes things super fun. And kind of like just grows the community and ecosystem altogether, right. I think the couple things I’m super keen on seeing happen is creating some kind of partnership and working something out with the Edge Protocol guys, where we can essentially allow folks to deposit, supply, and borrow all the assets that we have in our platform, PRISM, xPRISM, of course, pLUNA, and c and y LUNA as well. So it’ll be interesting to see what people use those assets for and how they kind of arbitrage the market rates for. And I think another partnership that I kind of want to see spawn is, I’m sure people are familiar with the v Curve models, and I guess, the other platforms and protocols that spawned on top, to essentially do the Convex model. And we’re seeing some rumblings of that right now on the Terra ecosystem for ASTRO-xASTRO, perhaps xMARS. But with this AMPS boosting contract, we essentially opened ourselves up to having other protocols diamond hand PRISM, stake xPRISM, and pledge, essentially just create a black hole for xPRISM and in return they give people the opportunity to use their platform and get the maximum amount of boosts, if they’re joining us, say, three months later, or five months later, six months later they don’t have to start from scratch, right. Like a lot of us here, we’re probably already AMPed up. But if you’re joining later, you might feel really far behind. So maybe a protocol will spin up in the next month or so that will start accruing AMPS for folks and allow people to essentially get the boost that everyone else has also been enjoying here.

RyanLion 22:29
And I think you’ve pretty much laid out the entire roadmap there between the two of you so you’ve not left me with much, but I think the thing that I was most excited about Prism was how the new derivatives that we’re creating from these refracted assets are going to be used across the ecosystem, whether that be yAssets and xPRISM being used as collateral in Anchor for example, or having 2xp and y assets in Lavana when that launches, or having our p, y, and c assets as collateral in Edge or Mars, and then yAssets in Kinetic. The thing that I was most excited about joining Prism Protocol is that I think it’s a new building block on Terra and I think it’s going to be really interesting to see how the assets that we’re putting out there are going to be utilized across the ecosystem

SJ Park 23:33
Yeah, one thing I would add also is… And this is more just a personal thought/ambition. I think a lot of us who are kind of familiar with the Terra ecosystem realize what an apex asset LUNA is. And I think there’s a lot of areas for growth for protocols, especially for Prism, to expand into other ecosystems as well. So imagine an EVM compatible native version of PRISM on AVAX or other ecosystems. So I think that’s something that we’re going to be taking a serious look at, and that should essentially create the opportunities for growth, beyond what everybody has been talking about. So super pumped about that as well.

MrRefractor 24:23
Yeah, I’m with you. I think it’s gonna be… I mean, obviously, we can expand easily into the Cosmos on Osmosis, or maybe THORChain, but taking what we have on to other chains, as you say, EVM, it’s obviously something we’ve discussed and I think it’s gonna be super exciting to try and take that there. And obviously, we’ve got good partners with lots of experience who will be able to leverage off that experience to try and recreate, or even have something new from what Prism is now over there. So I think yeah, I think there’s so much good stuff to do it’s gonna be fun to work out which stuff we prioritize first.

lejimmy 25:16
Yeah, I just want to add on, I think bribing would be huge, right. We have all these AMPS, it could generate additional revenue for folks if you allow other protocols or other actors to bribe AMPS holders to vote for some proposals on their behalf. Like for right now we have seven validators that we delegate LUNA to, from the LUNA that gets refracted, right. So I know danku just did a Space and he’s a validator, but he’s not one of our validators. So perhaps when our governance goes live he could put out a proposal and say, “I want to become a validator for the LUNA vault for Prism Protocol.” And if he’s able to bribe each and every one of us and say, “Okay, if you guys vote for me, and I’m a part of the LUNA that gets delegated, I can do some math here and figure out some numbers such that it’s worthwhile for me to bribe AMPS holders to vote for me to get LUNA delegated to myself.” And that’s just for the LUNA ecosystem, right. So as we start refracting other assets, may not bAssets, but say, other Cosmos assets like JUNO, or OSMO, EVMOS just sprung up over the last week or so, we can essentially have vaults for all of them, refract all of them. And by holding AMPS, you can just have this income stream from other validators that want your delegation, right, or want Prism Protocol’s delegation, and they’ll pay you for your votes. I think that’s going to be something really interesting that plays out maybe in the next few months or this upcoming year. But yeah, lots of cool, interesting things that we can cook up now that we’re finally launching, we’ve got so much out of us. All right, I can’t remember who was next to speak, was it Sean or Rob Bro?

Rob Bro 27:20
If you don’t mind, I can go.

lejimmy 27:22
Yes, please, what do you have for us?

Rob Bro 27:24
Just want to say congrats on the launch this morning. And I just had a question. So I’ve been staking yLUNA in the, I guess, regular staking vault. And now with the Prism Farm coming out, do I need to move my yLUNA that I’ve been staking there and stake it on Prism Farm?

MrRefractor 27:47
You should… Yeah, exactly. You should do it now. The base APR you’re getting at the moment is 95% versus 99 odd percent on your normal staking. So it’s very easy to do, you just go into the normal yLUNA staking you’re in, unstake it, and then just click into Prism Farm, and then you’ll be able to stake it there. And if you hold any xPRISM and you’ve been earning AMPS, you will also get the boosted yield on top of that 95%.

Rob Bro 28:18
Right that was my next question because I do have some xPRISM that’s pledged in the vault. And I guess it says it’s unactivated AMPS and I go to click on it and it’s grayed out. So I guess once I’m staking in the Prison Farm, I get to activate these AMPS?

MrRefractor 28:37
When you first put yLUNA into the Prism Farm, it automatically activates your AMPS for you. And every time in the future you add more yLUNA to the Farm, it will also activate your AMPS for you. But in the meantime, if you don’t change your yLUNA amount, you should go in fairly regularly and activate your AMPS just to make sure that you’re really getting the best deals possible.

Rob Bro 29:06
Right. Okay, awesome. Thanks.

MrRefractor 29:10
And also it shoots up confetti when you press the button as well. So [chuckle] it’s fun to… Activating your AMPS is fun.

lejimmy 29:22
That’s the most important bit. We had to have the confetti in there before we launched.

MrRefractor 29:25
So it got delayed, yeah.

Rob Bro 29:27
Great, thank you. Thanks again for answering and congrats again.

MrRefractor 29:32
Thanks very much. Appreciate it.

lejimmy 29:35
All right. I think we’ve got Sean. Sean, do you have a question?

Cephii 29:36
I believe, by the way, the confetti button is what crashed the system. Thank you.

MrRefractor 29:45
[chuckle] That is what’s put too much load on the whole network, sadly.

Blue Monkey 719 29:49
Hey guys, this is Sean. I come across as Blue Monkey. So first and foremost, I want to say thanks to this amazing forum, and really just the forums across the ecosystem. I’m not a finance guy by trade, I’m an engineering manager. So really, I came into the Terra ecosystem having zero understanding. And guys like Cephii, and OB, and countless others have been really instrumental and in helping me get some level of confidence. So thank you to the community. And then I think Rob asked the majority of my question, but if I understand you guys correctly, I take my existing yLUNA from the yLUNA staking area. And I stake that and I’ve been AMPing for 11.5 days now. So I should be able to stake that yLUNA and then go to the Govern area, click the AMPS vault, and then AMP my staking. Is that correct?

MrRefractor 30:57
Yeah, although the first time you put your yLUNA in the PRISM farm, it actually automatically activates your AMPS for you so you shouldn’t need to do it. I mean, so it’s only in the future as your pledged xPRISM is earning more and more AMPS every single block that you can go in and press the Activate AMPS button. But in the first instance, if you just unstake your LUNA from the existing yLUNA staking contract, and then restake it into the Prism Farm contract, then it should automatically activate your AMPS for you.

Blue Monkey 719 31:34
Fantastic. Thank you so much. That’s all I had, have a great day.

Blue Monkey 719 31:37
No worries. Thanks, Sean.

lejimmy 31:38
Cephii, how you doing ser?

Cephii 31:40
Good, good, good. I’m just trying to figure out how to game the fact that pLUNA is ridiculously cheap, because people are trying to take advantage of the yLUNA farming activities. So I continue to watch for interesting trades happening there. The last time pLUNA was at maybe 12 cents, I mean, not 12… Sorry, $12, I sold it after it went to $17 after Martingaling down to the lowest price. So I’m sort of looking at it from a traders perspective. And then I took that profit, and I’ve just bought all xPRISM in the 30s or something, 30 cent range. And so that’s doing really well. So I’m looking to figure out how to take advantage of the pLUNA opportunity, because I tend to find that doing the opposite of what everyone else is doing seems to work. And I think the more people sort of play with the Prism Swap mechanism as a trading platform, and kind of like as a DEX for the Prism components, I feel really good about the long term value mechanism for the xPRISM token, because ultimately, if you think about the DeFi experience like a really neat video game, then is just simply a matter of who makes the best video game, right. So the transactions tend to be persistent or high over long periods of time if there are a lot of popular and useful opportunities on a platform. And I think for me, Prism has always struck my imagination or whatever, even before release and when all of the white papers are happening. Super involved with kind of watching how this plays out, just because it seemed like this was not something that was, at least to my knowledge, available in DeFi elsewhere.

Cephii 33:47
And therefore, when you have the ability to refract assets, especially assets that are not on-chain, or imports from other platforms, that’s going to provide a gateway for people that are not on Terra to come over to do interesting things with their, let’s say Solana, or something like that in the future. So I think all that brings a neat value back to the xPRISM token as essentially the core trading pair token for the entire DEX. So yeah, thinking long term, that’s why when the PRISM price, I have no idea why people dumped it after the initial Mango Markets thing. But I would point out, just to gloat here, that I bought PRISM tokens as low as 24 cents, I think. Right now it’s in the 50 cent range. But I only point that out just because it seems like a lot of folks from the perspective of trading and understanding the mechanisms and understanding fundamentals, I think folks are tending to jump in last minute to everything. And the more folks who are listening here, my hope has always been to try to figure out how to make people successful, have a strategy. Again, I’m not part of the Prism team, I have Prism, so if I sound like a chiller, that’s just what it is, I guess. But that’s yeah, my take on the current situation.

MrRefractor 35:24
No, I appreciate that. And I think that’s something we wanted to create is, A, in the first instance, we wanted to give… Just using LUNA as an example, we wanted to give LUNA more utility. We wanted to give people the ability to decide whether they wanted to focus on price or whether they wanted to focus on yield, and if they wanted to sell their yield, or sell their principal exposure, or sell their governance rights. And so that was kind of like the first stage. And then the next stage is, we want to create interesting assets that don’t exist already in DeFi. And so, I think as time matures and we’re going to add more liquidity to the pools, you’re going to get the… I hope that in a couple of months time, if people are thinking, “Right, I want to own some LUNA,” people are thinking to themselves, “Right, well, do I actually want to own LUNA, do I want to own yLUNA, or do I want to own pLUNA?” And I think that’s going to allow people to take interesting views on LUNA, which is obviously a massively apex asset. And something a lot of us are pretty bullish. And so that trading is going to generate lots of fees for X Prism holders. And so not only is xPRISM exposed to the price of LUNA, it’s also exposed to all the trading that happens in all these LUNA derivatives that we’ve created. And that also helps make it a very high yielding asset, or it makes xPRISM a very high yielding asset, but also helps buffer things in a kind of, I guess, countercyclical way, because as markets become volatile, there’s much more trading, and more trading volumes mean more fees, and all of that goes back to buying back PRISM tokens.

MrRefractor 37:17
So I think as the market matures… I think you’ve obviously jumped in early and done some good trades on it.

MrRefractor 37:25
And I think as the market matures, hopefully more and more people are gonna feel comfortable kind of dipping their toes in and trading a little bit on these assets and maybe keeping a quarterback of the one that they like, but maybe deciding that they might want to venture and trade around in some of the other ones. So I hope when we introduce our charting, our trading view charts where you can look at the price of p or yLUNA in PRISM terms or in LUNA terms or in UST terms, I think hopefully, people are gonna see some interesting patterns and see some interesting trades they want to do and, it’ll spark up interesting conversations about strategies. So yeah, appreciate the kind words.

RyanLion 38:08
I see we lost Jimmy. Jimmy was joining from a ski holiday, so it’s good of him to join. I think we’ve got Cryptographur, if you want to jump in with your question, ser.

financial fungi 38:23
Sure. Thanks. Thanks. Yeah, I was curious if you guys had recommendations on… I mean, I haven’t fully dived into what the full capabilities of Prism are, but I’ve been listening to certain Spaces and hearing Cephii talk about it, but I haven’t totally wrapped my head around the full capabilities. I was just… Until I do that I was just curious what you guys think might be a fairly simple way to kind of get into the Prism dApp without too much strategy, I guess. I just see you guys just launched this Prism Farm is that a good way to just jump in right off the bat?

MrRefractor 39:13
I’d say your simplest lowest risk way of jumping in is just to take some LUNA, refract it, so we have a refracting tab, and that just splits your LUNA into pLUNA and yLUNA and then hold your pLUNA in your wallet and put your yLUNA into the Prism Farm. And that is the simplest way because whenever you want you can take your yLUNA out of Prism farm, you can combine it again with your pLUNA and get your original LUNA back. So you always know that you can get your original LUNA back. That’s the lowest risk entry level strategy that I think sounds like it would make most sense for you. And if you head to our bio on Twitter, we have a Resources page there. And if you click on that Resources page that gives you a step-by-step guide of exactly what I’ve just explained with all the relevant links. And that would be your easiest way of doing it. And I’d say if you then want to increase your yields in the Prism Farm, the next best thing to do is buy some PRISM tokens, stake them, and then pledge those tokens to start earning AMPS which can sound a bit… Maybe sounds a bit convoluted, but we have a step-by-step guide as well and that will allow you to get a a much higher yield and the Prism Farm. So if you head over to our Resources page, that is your best bet for the simple strategy I mentioned at the start.

financial fungi 40:52
Okay, cool. And then… I appreciate that, and is that link right on the Twitter profile for that?

MrRefractor 40:58
Exactly, exactly. It says Resources and that’s the best thing. It has got videos and it’s got all the main links to everything you need. And so we tried to make it a bit of a one stop shop for for everyone.

financial fungi 41:11
Nice thanks. And then is cLUNA 1:1 exchangeable for LUNA because I see the prices of those are pretty close.

MrRefractor 41:20
cLUNA is redeemable for LUNA in the vault. The price obviously moves around but it’s like bLUNA and LUNA, you can redeem one cLUNA for one LUNA in the vault. But the price on the exchange will move around, but you know that you can slow burn effectively, so 21 days, you can get cLUNA back to LUNA, or you can just swap instantly on this exchange the same way you can with bLUNA and LUNA from Anchor.

financial fungi 41:51
Okay, okay. And then yLUNA is yield LUNA, pLUNA is like price of LUNA but the prices are so off. I think that’s what I need to wrap my head around and learn about, what sets those prices exactly, and why are they so off? I mean, maybe that’s a basic question, but I just haven’t looked at that yet. So I don’t know if that’s an easy thing to answer or if I should just read about it.

MrRefractor 42:17
Not at all. pLUNA is going to give you the governance rights or proxy governance rights on LUNA in the future. There’s also going to have some other interesting, exciting features that we’re going to, I guess, communicate more on in due course, but don’t want to say too much now. But that’s gonna… Putting a price on it, that’s a tough job. And I think when we first launched the protocol, I think I was on YouTube with danku, and I think, unless you have a really strong view at the start you’re probably better pursuing a low risk strategy where you don’t necessarily take a price view on pLUNA or or yLUNA. But as you learn more, and you decide that you might have a view or you might prefer one asset versus the other, like Cephii was saying just now, then it’s exciting market but your lowest risk strategy is just to hold on to both your p and y LUNA to start off with until you feel like you have some strong views about the price of one versus the other.

financial fungi 43:23
Gotcha. Thanks and so is yLUNA plus pLUNA always equal to cLUNA, is that the idea?

MrRefractor 43:31
Exactly, you can always merge them in our Merge tab and one yLUNA plus one pLUNA is always going to equal one cLUNA.

financial fungi 43:40
Okay, so they’re… Okay. And then the prices, I guess, are sort of shifting. So if you’re more heavily invested in one or the other, you believe in one or the other, I guess the cost would be… You can always get your LUNA out. But the benefits of each one are what I guess you’d either miss out on if you’re wrong about which one you’d rather hold more of, is that sort of the idea or…

MrRefractor 44:08
Yeah, you can always do one for one and that’s that means it’s always going to add up to the price of one LUNA, so the prices of them can shift around and one pLUNA can be worth less in dollar terms, but one pLUNA and one yLUNA is always going to equal one cLUNA.

financial fungi 44:27
Right. Okay, cool. Thanks. Yeah, I got a better idea. Appreciate that. Thank you.

RyanLion 44:33
Yeah, I think it’s easy to overthink Prism Protocol that there’s all these different letters of LUNA that can be very confusing, but at a very basic level it’s just a… You can think of Prism as like a liquid staking platform, right, except that instead of getting one liquid staking token, you get two tokens a y and a p. I think as Hyperion was saying there, if you just hold equal amounts of both, so you get equal amounts when you refract LUNA, if you’re holding equal amounts of both the price of each one is kind of irrelevant because you can always merge them back together and get your full LUNA out. It’s only if you have a strong view on one or the other side where you might want to trade your p to y, or you might want to trade some of your y to p, at that point you’re introducing some risk where if the ratio then goes against the way that you’ve traded, then there’s a potential that you could dilute your LUNA holdings, or if it goes in your favor then you can potentially increase your LUNA holdings. So yes, it’s really easy to overthink it but at a very basic level just think of it as like the liquid staking platform.

financial fungi 45:58
Yeah, I guess that may… I hear what you’re saying there, I guess I’m just a little confused when you just said that though, because if yLUNA and pLUNA are supposed to equal cLUNA, which is exchangeable 1:1 for LUNA, then how do you end up… If the ratios change, wouldn’t they change equivalently so that you can still redeem it for one cLUNA? I think that I just got confused about, if the ratios change how does that end up diluting you or end up benefit in you?

MrRefractor 46:28
If you hold both of then it doesn’t… It’s exactly like holding one cLUNA or one LUNA. So it doesn’t matter if the price of LUNA is $80 and one pLUNA is worth $20 and one yLUNA is worth $60, if the price of pLUNA moves to $30 and the price of yLUNA moves to $50, it doesn’t change, you still effectively have exposure to one LUNA, which I think is why Ryan make the point he did in that if you just hold both of them, you have effectively a liquid staked LUNA, and so it’s only when you start selling one or trading one for the other that you start having different exposures.

financial fungi 47:16
I see. So if you traded all your pLUNA for yLUNA or vice versa then that’s when you could potentially get diluted or end up with more LUNA, potentially.

RyanLion 47:29
Exactly. So if you look at the prices that they are now I think yLUNA is $70, pLUNA is $13. So let’s just say, the price of LUNA stays at $83 and I decide that I’m going to swap all my pLUNA into yLUNA, right. If then the price of P LUNA, let’s say goes up to $20 and the price of yLUNA goes down to $63 then I’m not going to be able to trade back and get all my pLUNA, get the same amount of pLUNA back because the price has gone up and vice versa if I decide to make that same trade but in the different scenario yLUNA goes up to $76 and pLUNA goes down to $7, in that scenario I’m going to be able to end up with actually more overall LUNA if I trade back into pLUNA at that point. Does that make sense?

financial fungi 48:34
Yeah, yeah definitely make sense. Now that I kind of more understand it, I’m actually now seeing why there’s a lot of talk about it. It’s pretty cool actually.

Cephii 48:42
I might add a slightly different way to consider this. So just think about, let’s say for example, yLUNA or pLUNA, you have a few ways to acquire these things, right. One option is to refract, which will get you an even amount of both. So for example if I want exposure to yLUNA and I already have LUNA, the cheapest thing for me to do would be to simply refract it. Why? Because let’s say LUNA is worth $100 just for sake of math, I now have essentially a pLUNA token that I sort of paid too much for, but I have yLUNA that I paid less for in a way if you think about it. Just think about the conversion process as an actual sort of acquisition cost as it were. And then the other way you can buy or access your pLUNA or yLUNA is to pay straight cash for it, right. The cheapest way to get pLUNA right now would be to just go UST to pLUNA. It doesn’t make sense to refract for that component, right. And then the other way to look at it is, okay, if I refract, and I convert one to the other, what is the opportunity cost as I’m doing that? You also have to consider, do you want to be in yLUNA forever, or do you want to eventually refract in the other direction for some reason, right? And is governance important to you? In which case right now, once pLUNA has governance properties, if I buy a pLUNA now, I might be able to go crazy, buy a whole bunch of pLUNA and get really, really outsized governance capability for the amount of money that I’m spending. And this could be more relevant to larger scale buyers. Especially when there’s more liquidity, and less slippage in buying pLUNA. So right now, it’s like you have to nibble at it sort of, because if you don’t, the market slippage is too high, the total value locked or the liquidity is simply not there yet to go too crazy.

Cephii 51:13
But anyway, but yeah, just look at it from all these different perspectives. As an example, right now, I think there’s a 25% APY in the pLUNA-PRISM pool on the DEX. So if I want to get a lot of access to that, it’s actually cheapest to get access to that pool compared to paying cash for yLUNA and then having an equivalent amount of PRISM token that I have to add. So that’s another way to kind of consider how you might get different styles of exposure. And there’s one other piece of the puzzle, and that is that if you think about how AMM works, right, Shigeo talks about this a little bit, let’s say I’m in the pLUNA-PRISM pool, and let’s say the PRISM token goes up in value, but relatively speaking, the pLUNA goes down in value, which has been happening as of late. Then automatically, the pool is going to balance towards the pLUNA side. So if my goal is to get more pLUNA, as it drops, it achieves that function. If I’m comfortable with having my PRISM token essentially sell into pLUNA as it rises, then I’m again comfortable that option. And then I’m getting all of the yield, which essentially, is autocompounding into that pool. And the yields, as long as the volume on the DEX is high, it’s going to lead to a substantial amount of autocompounding rewards over the period of a year. So really, you just have to decide what price exposure you want, what kind of strategy that might entail, and think about that from the perspective of each of the pairs in the pool, and what happens to the quantity of coins in each of those sides of the pair, depending on the performance of one thing or the other. So my intuition is that in my PRISM-pLUNA pool, what will happen is, and so far I’ve been right, and that is that pLUNA’s price is going to stay relatively stagnant, because of the popularity of yLUNA, the xPRISM token… Again, my intuition is that the price will go up because to participate in all these things, you need lots of it. Plus, there’s all these AMPS and whatnot that promote the utility of the thing. And then what will happen is, is in my pool it’s going to balance towards more pLUNA. So therefore, as my pLUNA count goes up later on, if I do need to convert yLUNA over for whatever reason, then I actually have more pLUNA, with which to do that with.

Cephii 54:03
So the derefactoring or merging process you want to consider as well. So all of this is just one big sort of trading/strategy game, which is really fascinating and fun. And I think that will continue to attract people that want these different price exposures. But at the same time, one should be careful with strategy. There’s plenty of ways to lose money if you do something silly. [chuckle] Because you can’t have everyone in a trade get the positive benefit of a trade, you just have to have some thesis. Your thesis has to be right to make a buck off of things. But I think the high transactional rate, so the high transactional volume on the Prism platform and the relatively high APYs, assuming my thesis that they’re going to persist, not just in the yLUNA component but just in all of the pools, then what will happen is, is that the autocompounding effect of that, in my opinion will sort of mitigate some of the various volatility risks. So I look at it from lots of different perspectives here, but you’re getting a different type of price exposure, like Hyperion and Ryan have said, I wouldn’t necessarily… If you don’t know what half of what I just said means then the simplest thing to do is refract, stake your yLUNA, use it as a liquid staking, keep all your pLUNA, don’t gamble it and do different things with it, and just earn all the neat yield and relax and have fun. [chuckle] There’s no need to sort of really risk too much if you don’t know what you’re doing. Okay, anyway, maybe some if anyone has any other questions.

financial fungi 55:50
Cool, thank you appreciate that.

MrRefractor 55:52
I’d also say always look… Cephii, you mentioned if you’re going from UST, but you can buy direct from the DEX, but also another thing, another arbitrage that people have made a lot of money out of, is rather than, say, buying pLUNA outright with UST, just swapping it to UST, they’ve used their UST to buy LUNA, refracted that, and then sold the yLUNA for pLUNA and actually ended up with a lot more pLUNA than they would have done if they just taken their $100 and bought pLUNA. So it’s worth watching the various different exchange rates because it can throw up some really interesting arb opportunities like that. And we’ve seen a lot of screenshots and stories from people that have made a lot of money doing that. So I think it’s all this stuff normalizes and as you say, we’re gonna add a lot more liquidity, these opportunities are gonna be… At the moment, it’s been a smaller sandbox, it’s been great for people to be able to get a feel of and because there hasn’t been huge liquidity in there, it hasn’t been something where whales have been coming in doing 500k or 1 million tickets, and it’s allowed more normal users to be able to get a feel for the protocol before extra liquidity gets added, and then it can become more attractive for larger players. And that also means that smaller players have had an opportunity to build up AMPS in a more proportional manner to the amount of yLUNA that they’re putting into the Prism Farm contract. So we wanted to try and make things as fair as possible. And kind of favor a larger amount of users. And so that’s hopefully what we’re doing and now, hopefully, people have got their teeth into it and it’s time to take this from a soft launch into kind of a full launch mode now we’ve done phase four.

financial fungi 57:51
Cool. One more question before I go. Jimmy tweeted yesterday, I think, I didn’t realize the Prism Farm… He’s mentioned something about after 30 days, they would start vesting, the rewards, I guess, is that in 30 days… So right now the rewards you get are accessible. But in 30 days everything that you get is going to be vested, is that what he meant or…

MrRefractor 58:21
Yeah, so the way it ends up working is you’re always earning rewards. And then once per day, a bot is going to go and move all your rewards into a 30 day vesting contract. So every day your rewards will automatically get put into a 30 day vesting contract. And then 30 days later you can claim all those rewards. And so this process will happen every single day. So after 30 days from when you’re first in the Farm, you’re going to be able to claim your rewards every single day if you want and we’ve defaulted it so that we’ve made it really easy for people so that when you claim your rewards, if you click on there now, you’ll realize that there’s a… It’s claim and pledge, which actually means that with one click you get to claim your PRISM rewards, your PRISM rewards get staked for xPRISM and your xPRISM gets pledged into the vault so that you’re earning AMPS, so we’ve kind of tried to make it really simple for people that way. But yeah, that’s how the vesting contract’s gonna work.

financial fungi 59:26
Got it. Cool. Thank you.

Cephii 59:27
Oh, guys, I just thought of a little feature request, maybe jot down [chuckle] but

RyanLion 59:34
I got my pen out.

Cephii 59:36
[chuckle] You got your pen out. What you could do is you could have a staking pool with yLUNA that uses the yield ultimately to farm pLUNA. And that way, if someone were to loop into buying more yLUNA by essentially selling all of their pLUNA, they have Have a long term strategy via yield to reacquire the pLUNA needed to merge in the future if they felt like doing so. So that might be an interesting vault so to speak to make this…

RyanLion 1:00:14
You can actually do that already, Cephii. In the yLUNA staking contract, the normal staking contract, you can choose to claim your awards and… You can either claim as is, so claim equal parts y and p, or you can convert to all y, all p, or you can convert to PRISM or xPRISM as well. So there’s…

Cephii 1:00:41

RyanLion 1:00:45
So I guess that kind of already exists.

Cephii 1:00:48
Okay, great. All right, then I’m just an idiot then. All right. See you later. [chuckle]

RyanLion 1:00:53
Let’s try some quickfire questions. We’ve lost a couple of speakers, I think. But Warren’s been up here waiting patiently. And I’ve got a few other requests. So Warren, jump in with your question.

Warren 1:01:04
Hey, good morning or afternoon, depending on where you guys are. I want to question when I initially heard about the Prism Protocol, obviously, I went and watched the video. And the thing that caught my interest the most or attention, was a point when it made that in traditional finance, you can go between fixed and floating yield. And my question is more so if you guys could kind of expand on that point. And so that way maybe some of us that aren’t traditional finance people have a better grasp of the addressable market or, obviously, Prism being able to facilitate that, or fulfill that need in the crypto market?

MrRefractor 1:01:46
Yeah, I’m happy to. Thanks for the question. So, in traditional finance, I guess the largest global market in traditional finance is interest rate swaps. And that is where you, as the name suggests, you’re swapping your interest rate in one asset for either a fixed rate in that same asset, or for a rate in another asset. And this allows you to… Everyone has exposure to it in many different ways that they don’t realize, so if someone’s lending you money, your bank is lending you money, or you’re spending on your credit card and paying an interest rate on that, that money is being lent to you, and people are hedging their interest rate exposure by trading these interest rate swaps. If you have a mortgage on your house, you can decide whether you want to pay a fixed rate on your mortgage or a floating rate on your mortgage. And the bank that’s giving you the mortgage will then hedge out that interest rate risk by trading interest rate swaps. And so this is something that doesn’t really exist in DeFi as much. And also, in traditional finance, you have to get intermediated by banks, who will effectively net off these floating and fixed payments and then give them to each of the counterparties. And what happens in Prism in the future is when we add maturities, you’re going to be able to say, for example…

MrRefractor 1:03:23
Say for example, Anchor is yielding aUST and Anchor is yielding 20%, you might decide to yourself that that is a… You think the Anchor rate’s gonna go down, the Anchor rate might not be sustainable, or we’ve seen people spreading that kind of stuff on Twitter.

MrRefractor 1:03:42
So you might think to yourself, “Well look, if I take my UST and I split it into a one year, yUST and a one year pUST token,” someone might say, “Well look, I’ll buy your one year yUST token off you for $15,” because they think that over a year, the yield is going to be 20%, which would be $20 on $100. So if they’re right, they’ve paid $15 for something, and over the year, they can earn $20 on it. So 33 1/3 percent return. But you might think to yourself, “Well, look, I’m taking exposure to the Anchor rate and it may be $20 over a year, it may not be $20 over the year.” And if someone will let you sell your future yield at $15 for the year, then you’ve effectively fixed your interest rate. And I guess, also similar to that example, and some of this makes more sense when you kind of write it down on a piece of paper, but if someone’s paid you $15 for your yield on $100 over the year, then that means that the yield token is worth $15 and so the principle token is worth $85. So another way of fixing your interest rate is you would buy the principal token at $85, and then at the end of the year, you can redeem back the original $100. So you’ve fixed your interest rate there, because you’ve got a guaranteed $85 to $100. So just to shade over 15% on your yield. So by buying that principle token, you’ve also fixed your interest rate. So when maturities come in with Prism Protocol, which we’re very excited about, that’s when you’re able to fix your floating… Well, decide whether you want to speculate on floating interest rates or whether you want to guarantee your rate and get a fixed rate.

Warren 1:05:43
Oh, thank you. That was it. I think just hearing about interest rate swaps, and how that relates to bank lending and credit cards kind of gives me a little bit more scope about the project, so thank you.

MrRefractor 1:05:53
No worries. And also I’d say on our Resources page linked on our bio, I’ve put a load of links at the bottom there actually, for people that are interested in learning in some more of the just general financial concepts that Prism is based on. So things like interest rate swaps, things like cash flow based lending, that kind of stuff. I’ve actually put some links on our Resources page at the bottom, just if you’re interested.

Warren 1:06:24
Okay. Yes. Awesome. Thank you.

RyanLion 1:06:26
Cool. I think P Skidz was about to ask his question.

P Skidz 1:06:30
Yeah. Thank you guys. Can you hear me okay?

RyanLion 1:06:32
Yeah, we got you, man.

P Skidz 1:06:34
Yeah, great. Well, first of, it’s great to see a lot of these DeFi protocols. I’m currently building a more consumer facing application on Terra. So in the near future, we’ll maybe have some better conversations to be able to plug in and utilize some of the stuff. But I’m kind of a novice when it comes to the protocol and I think a lot of these questions have been great. Mine’s pretty simple. I just mess around with the AMPS earlier. Now how often… If you can kind of give a high level view of the AMPing and what it is, and then how often do you want to kind of redeem those AMPS to get that that extra APY if that makes sense.

MrRefractor 1:07:17
Yeah, I think… I mean, ultimately, it depends how much yield you’re kind of earning in monetary terms, because there’s a very small gas fee when you activate your AMPS that you haven’t. And so really, you want to make sure… If you have a medium amount of yLUNA in the vault, then you probably want to be activating it once, maybe twice a day. But really, I think probably thinking about it once per day is probably a sensible kind of level. But if you have a very small amount, where the gas costs of activating your AMPS too frequently might outweigh the benefit of that, then may be you want to leave it a couple of days before you activate your AMPS each time. So it really kind of… It’s a personal thing that kind of weigh up versus how much yLUNA you have and how much yield you’re getting, versus just the sort of negligible gas costs that are there when you activate your AMPS.

P Skidz 1:08:20
Sure is there a set number when you hit the boost or does that kind of fluctuate?

MrRefractor 1:08:26
The AMPS formula kind of depends on how much AMPS everyone else in the AMPS vault has and how much yLUNA is in there. So it varies and you can see your number at any given point in time. And obviously when you activate your AMPS, your yield should immediately increase. So it ends up kind of being a personal thing and honestly depends on your own amount of yLUNA that you have in the vault.

P Skidz 1:08:55
Awesome. Yeah. Thank you. No, that makes sense.

RyanLion 1:08:58
Cool. Thank you for the questions. Scott, do you want to jump on?

$cott 1:09:02
Morning, guys.

MrRefractor 1:09:03

$cott 1:09:04
Congrats on your launch of the new Farm. I had a quick question. Simple. The yield from the pools, where do you see that?

MrRefractor 1:09:16
Are you talking the liquidity pools or on the farming contract or the normal LUNA staking?

$cott 1:09:23
Liquid pools. Like the pLUNA-PRISM, PRISM-UST…

MrRefractor 1:09:27
Yeah. So if you click in our Pools tab, it’s there’s a column called APR. And so that shows you the yield that you’re currently getting on those pools. Is your… Yeah, I mean, does that answer the question?

$cott 1:09:47
So… Yeah, what does it pay out in?

MrRefractor 1:09:50
So that’s a good question. So what people will be used to… I guess the way to understand it is, when you become a liquidity provider in a pool, you put both assets, so say PRISM-UST into the pool, and you receive an LP token in return. And an LP token represents your ownership of that entire amount of assets in that pool. So your share of the assets in that pool. Now, every time someone does a swap on that pool, a fee is paid to the liquidity providers, so yourself, and that fee goes into the pool. So if someone does a PRISM-UST swap, they pay a small percentage fee, maybe in PRISM, and that PRISM fee that they’ve paid goes into the pool, and you as an LP token holder own a share of that PRISM fee that’s been paid. So in Prism Swap’s instance, your LP token just increases in value by those fees. So you don’t receive those fees getting paid out to you. But then what other protocols also have on top of that is to incentivize liquidity, they’ll let you take your LP token, and then you can stake your LP token, and the protocol will pay you liquidity incentives. So with us, for example, we were happy with lower liquidity to start and we have the ability to add more liquidity. And so we don’t necessarily need to pay high inflation with liquidity incentives, which can dilute yields and dilute price for xPRISM holders. So we’re not going to be paying out liquidity… Or at the moment, we’re not paying out liquidity incentives. So the fees that you see on the pools page are purely from the swaps that are happening on the pools and not any inflationary liquidity incentives.

MrRefractor 1:12:01
In the future, we may decide that it makes sense, obviously, in discussing with the community, it may make sense to add liquidity incentives, which we’ll do, and then those would pay out in PRISM tokens. But at the moment, the yield you’re getting is just effectively paid into the pool. And your LP token means that you own a share of those fees. And when you come to burn your LP token and you get your two assets back, then you’ll also be getting two assets, plus the fees that have been earned since you’ve been in the pool. I mean, LP tokens aren’t necessarily actually the simplest topic. But it’s helpful to learn about because there’s definitely really good autocompounding benefits, particularly if you’re bullish on both assets in the pool. So if you’re bullish on both PRISM and pLUNA, for example, then actually the PRISM-pLUNA pool can be a good place to be because you have price exposure to both those assets. And currently, it’s earning 25% APR at the moment. So it allows you to… And it’s also autocompounding so you don’t have to claim the fees, that can also have administrative and tax benefits as well that you’re not receiving it as income. So it’s an interesting topic, and hopefully that helps.

$cott 1:13:21
Yes, thank you.

RyanLion 1:13:22
Yeah, we do get that question a lot, because I think people are so used to having token incentives paid out on liquidity pairs, whereas we’re not currently incentivizing our pairs. So it’s the only other LP that I’m used to provide into that doesn’t have liquidity incentives is the bLUNA-LUNA pair on TerraSwap. So it’s a similar kind of vibe, where your position increases based on the fees. Thanks for the question, $cott. I think we add $ugar next up if you want to jump on, ser.

$ugar 1:13:59
Yeah. Hey, guys. I just wanted to comment and then one question, you guys were talking with, I think the guy just before $cott about sort of the trade offs of when to hit the AMPS. And for me, it’s always worth the gas fee to simply see the confetti and celebrate. So I think that’s underappreciated. [chuckle]

MrRefractor 1:14:20
Exactly. I didn’t want to say it, because it’s definitely not financial advice, per se. But yeah, I would happily pay two cents to see the confetti every time.

$ugar 1:14:31
Yeah. I guess as I kind of learn more about this, I’m wondering and I know you talked about adding the charting feature probably later this week. And with pLUNA and yLUNA, I think there’s this interesting dynamic of the discourse that if you look at it over time, it’s sort of a function of two dimensions, both the price of LUNA and then maybe the swapping between y and p. Are you guys planning to add a chart that looks at sort of that ratio so you can see how the things have swapped?

MrRefractor 1:15:05
Yeah, definitely, you’re going to be able to graph pLUNA versus LUNA, or pLUNA versus… Or yLUNA versus cLUNA or LUNA. And so that effectively will show you as a percentage of LUNA’s price, what pLUNA or yLUNA are doing at any particular given point in time. I don’t think… One of the interesting side effects of creating the protocol that’s been fun to see, and maybe it wasn’t so clear at the start, is effectively it’s one very big player versus player game, or it has turned into a little bit at the start where if pLUNA price goes higher, it directly picks the pockets of yLUNA and vice versa. So initially, you see a very strong community around yLUNA managing sort of obviously pushed pLUNA down in price. And I think over time these things are normalized. But you see if someone’s kind of… It’s not something I’ve necessarily seen in other protocols where if someone’s pushing one coin, then they’re directly trying to lower the… Directly or indirectly trying to lower the price of another coin. So it’s been really fun to see, I guess, the pLUNA DAO, the yLUNA DAO, these kind of factions spin up on it, but yeah, I think it’ll definitely be fun to watch.

$ugar 1:16:43
Yeah, cool. I can imagine an event where we have different camps, right, and we can get into the competitions. [chuckle] Great. Well, congrats on the launch, guys. It’s worked great. So, exciting.

MrRefractor 1:16:55
Appreciate it, thank you.

RyanLion 1:16:57
Thanks for your question, man. ShareWizard, I think you’re up next.

ShareWizard 1:17:02
Yeah. Thanks, guys. Yeah, it’s kind of this PvP in terms of p and y LUNA, but it’s also cool how it’s a positive sum in that, in theory, if the price of LUNA continues to increase, then therefore everyone can win, which is really cool. And you kind of answered part A of my question, I’m going to go in terms of the need to increase liquidity in the LP pairs, which I was really interested in. I’ve been watching it kind of increase, most of these pools have increase over the last several days, which is really great, great way to play all this exposure to transactions and swaps. But I am curious, I guess, and I just want to say one thing that I’m also really appreciative that you guys have been so cognizant of just being aware of when to hold back on further diluting with emissions. That’s something that you and Ryan and Jimmy have expressed multiple times. I just want to express that. So thank you for that. The question is, if you felt like you needed to increase liquidity over the next, whatever, several days and months and incentivize that, do you plan on… And obviously not hold anything… Please. Just hearing your thought process. Do you plan on having those with AMPS potentially earn a greater percent of the natural swap APR or potentially with a reward in terms of admissions of more PRISM coming on? And if that question, it’s not clear, I could try again.

MrRefractor 1:18:45
No, I understand that. It’s actually siphoning out part of the fees that get paid into the liquidity pool is a non trivial exercise. So I think if we ended up using AMPS, it would be… Or the intention is that in the future, we are going to use liquidity incentives because we’re going to be spinning up lots of different assets in the future. So when we start refracting bAssets, or LP tokens, or having maturing assets, that may make sense for either us to add liquidity incentives or other protocols might decide that it’s very beneficial for them to have their tokens refracted, and they might want to apply liquidity incentives. And in those situations, we definitely think it could make sense for AMPS holders to have similar to what we’re seeing in the Farm now, there to be just a base liquidity provider, liquidity incentive, and also boosted AMPS, boosted liquidity provider incentive. So that’s one thing that we have. And also, I think it’s been communicated publicly and we’ve linked to those communications on our Notion page. I think one or two of our partners have committed to providing quite a lot of liquidity, which means that we have liquidity that we’re able to add in fairly short order without the need to provide any dilutive liquidity incentives. So, overall for PRISM holders, hopefully that’s a net benefit, because it reduces inflationary supply, it means that we don’t need to rely on mercenary capital to provide liquidity incentives. But in the future, when we do add liquidity incentives for maybe other pairs, we want to make sure more of those incentives go into the hands of loyal xPRISM holders, like we’re doing with Prism Farm at the moment.

ShareWizard 1:20:57
I appreciate that. Super clear. Thanks so much.

RyanLion 1:21:01
Thanks for your question, ser. I think Obiwan was up next.

Obiwan 1:21:06
Yeah, thank you, guys. Appreciate the protocol and enjoy using it, and sorry to say I missed out on the confetti because I was using mobile. I don’t know if I need to do that on a desktop next time. But looking forward to it. [chuckle]

MrRefractor 1:21:20
Strongly recommended it.

Obiwan 1:21:22
Gotcha. Okay. So I’m on the Prism Protocol and I just had a question, when you get your rewards, and you hit the Claim and Pledge button is that automatically putting the PRISM into xPRISM?

MrRefractor 1:21:34
When you… So each reward you earn will vest 30 days later. And when you hit the Claim and Pledge button, it is going to you have a choice, you can either claim and pledge, claim and stake, or just claim. And if you click Claim and pledge, what we’re doing is in one click, it effectively takes your PRISM that you’ve earned, stakes it to become xPRISM, and puts that xPRISM into the AMPS pledge vault, so that you’re instantly earning AMPS on it. So we just wanted to kind of make it a really streamlined quick process for people that want to direct their PRISM tokens into the pledging vault and carry on maximizing their yield. Because ultimately, if people find PRISM tokens, and they don’t stake and pledge those, then they’re going to be diluting their yield because the people that do stake and pledge are effectively going to be stealing more of their yield because they’ve started earning AMPS.

Obiwan 1:22:34
Yeah, beautiful. I like it. Thanks for that clarification. The other just quick question I had is any updates on the Dashboard and the My page? And what can we expect to see when those become available?

MrRefractor 1:22:45
Yeah, I think the plan is to get a lot more charting out this week, and either have the Dashboard and My Page out later this week or next week. I mean, at the start of a protocol, the historic data and historic charts that are a feature of some of these Dashboard pages aren’t necessarily the most relevant because you don’t have a huge time series. But now we’ve got… Hopefully, by the end of this week, or the beginning of next week we’ll have enough historic prices and historic data on yields to provide pretty good informative charts that we have planned for the My Page and the Dashboard page.

Obiwan 1:23:26
Excellent. Looking forward to it. Thanks, guys. That’s all I had.

RyanLion 1:23:28
Thanks for your questions, man. I think we’ve got Caleb up next.

Caleb 1:23:34
Hi, guys. Thanks for the opportunity. I just have a simple question. I just refracted my LUNA and sticked the yLUNA now in the Prism Farm. But my question is, what next? How do I see my rewards or what’s the next step, basically?

MrRefractor 1:23:54
You should see your rewards accruing in the farm. And then after 30 days… So each reward you earn will be claimable 30 days later. So you’ll see your rewards total there. And then once per day, your rewards will move into the vesting column. And then they’ll be claimable 30 days later. So between now and then, you can… I’d say your options are hang out, you can add more yLUNA to the farm. Or if you want to get a boosted yield, you can actually start pledging more xPRISM and earning more AMPS and then that’ll start boosting your yield as well in the Farm. But in terms of claiming your tokens, the first ones you’ll be able to claim will be in 30 days time.

Caleb 1:24:40
Sorry, I think the line broke off… Do you have something like My Page or something similar that you have in Anchor? Or a profile page to see my activities on Prism?

MrRefractor 1:24:53
Yeah, we will have My Page and Dashboard but on the yLUNA Farm page, once tokens move into the vesting contract, if you are on the Farm page now you’ll see there’s a section that says “Rewards total”, then the next bit says “Vesting”. And under there it says “Details”. And once your tokens move once per day into the vesting contract, it’ll show you when your tokens are going to be released and it’ll give you the vesting date.

Caleb 1:25:21
Okay, I’ll try to find it’s because I can see at the moment.

MrRefractor 1:25:24
Okay, great. That sounds good. Thank you very much.

RyanLion 1:25:28
Thanks for the question, Caleb, hope you get that sorted. And if you’re still struggling, feel free to jump in the Telegram or Discord if you have any questions. I think we’ve got Marty up next. Hey, Marty, how you doing? Feel free to ask your question, ser. If you’re going to stay on mute, I’ll ask JG to jump in.

JGnfty 1:25:51
Hey, guys. Quick question. So I split my LUNA, I staked the yLUNA, and I already had Prism x. I wanted to stake more Prism x, but it wouldn’t let me up my pledge, is there a reason for that?

MrRefractor 1:26:12
You should always be able to… Or you are always able to add xPRISM and pledge more xPRISM.

JGnfty 1:26:19
It’s not letting me. I have xPRISM right now. And if I go to the AMPS vault, it’s the Pledge button has a zero with a slash through it.

MrRefractor 1:26:34
Interesting. All right. Well, look, can you hop into Telegram and we will take a look at that for you.

JGnfty 1:26:40
Yeah, of course.

RyanLion 1:26:41
Do you have xPRISM or Prism?

JGnfty 1:26:44
I have xPRISM.

RyanLion 1:26:45
Okay. And do you have UST for gas?

JGnfty 1:26:48
I have that too.

RyanLion 1:26:51
Okay, interesting.

JGnfty 1:26:52
And I have LUNA, I have all the…You know what I mean, all the little gas components. But it’s just letting you do it, the button’s grayed out, lighter than it should be. And I’m getting a circle with a line through it like it’s not allowed if I hover the cursor over the button.

RyanLion 1:27:09
Yeah, I know what you mean. I would suggest maybe try disconnecting and reconnecting wallets, for example.

JGnfty 1:27:16

RyanLion 1:27:18
If you’re still struggling, yeah, jump in the Telegram and ask, and maybe send some screenshots.

JGnfty 1:27:24
All right, I just disconnected and reconnected. Let me see if that solves the problem.

RyanLion 1:27:28
Well, I know that the network is having some problems at the minute. I think the Mars launch has kind of taken down a number of the Terra nodes so that could be playing a part as well. But as far as I’m aware, that’s not a widespread problem that’s going round.

JGnfty 1:27:44
All right. And the other question I have is, a lot of people are posting these crazy APYs, right, but where are they seeing these and how are they getting them? Somebody was posting 2300% APY, I’ve looked everywhere on the site, I have y staked I’m AMPed and my AMPS aren’t even activated, it says I’m still in some waiting periods?

MrRefractor 1:28:07
Are you in the normal yLUNA staking or are you in the Prism Farm?

JGnfty 1:28:12
So look, if I go to… I’m at the Stake first, right. And then if I go to the Prism Farm, I click it, right. And it says “Activate My AMPS Boost”, so I click that. And then it takes me…

MrRefractor 1:28:29
Yeah, you need to put some yLUNA into Prism Farm, and then… Yeah, so the first…

JGnfty 1:28:37
But I staked yLUNA so… Oh I had…

MrRefractor 1:28:42
Yeah, so you… Yeah, exactly. Exactly. You can just unstake your existing yLUNA from the normal… So when you click on “Stake”, you can see two… Basically yLUNA is staked…

JGnfty 1:28:42
Oh I’m staked on the wrong side. I got it. I fully understand now.

MrRefractor 1:29:03
All good.

JGnfty 1:29:07
I’m like, “Dude, this is…” Anyway. Thank you so much, guys. Appreciate it.

MrRefractor 1:29:11
All good.

JGnfty 1:29:12
All right.

RyanLion 1:29:12
Yeah, no worries. I hope you get your xPRISM pledging issue solved as well.

JGnfty 1:29:21
If it doesn’t work out, I’ll just jump on Telegram. It’s all good.

RyanLion 1:29:23
Thanks, man. Take care. Marty, do you want to jump in now? Have you found the mute button.

marty schoffstall 1:29:30
Hey, sorry for the delay there. So, first of all, congratulations, great launch. And, my question is maybe a little bit more technical, I guess. But for your servers that you’re using, are they bare metal or are you relying on Amazon?

MrRefractor 1:29:48
Well, we got a variety on these things. Maybe you can DM me on this one and I can give you some more of the technical overview on it.

marty schoffstall 1:29:58
Okay. My concern is the March 11th change for the Russians. Thank you.

MrRefractor 1:30:03
No worries at all, appreciate it, sir. Sounds good.

RyanLion 1:30:07
Okay, Lucky, do you want to jump in? Lucky, are you there? Hello, we can hear you.

Lucky Luciano 1:30:13
Can you guys hear me?

RyanLion 1:30:14
Yeah, we can hear now.

Lucky Luciano 1:30:16
Oh, sorry. Oh, it’s weird, my mic’s not off. No, I was just gonna say I just bought some more PRISM and staked it so maybe JGnfty is having some computer issues but I just tested it and it works.

MrRefractor 1:30:29
Perfect. Thank you very much.

Lucky Luciano 1:30:30
Just wanna let people know.

MrRefractor 1:30:33
I was about to fly up the flare to our dev in Asia to see if he could get up out of bed. But I’m glad to hear it.

Lucky Luciano 1:30:42
I purchased more and threw it in there and it all was good.

MrRefractor 1:30:47
Thanks very much.

Lucky Luciano 1:30:48
No problem.

RyanLion 1:30:49
Cool. I don’t know if anyone else in the audience has any final questions. I think we’re out of speakers, out of questions for now. Cephii, I don’t know if you wanted to jump in with anything before we close up here.

Cephii 1:31:04
No, I think you guys covered everything. Great. Hopefully the network congestion will calm down by tomorrow, things are a little bit nutty right now.

MrRefractor 1:31:14
Yeah, well, I’d say thanks very much everyone for your support, and for everyone that’s already got in and refracted, and given the protocol ago, that’s the main reason for the Prism Farm is we want to give users of the protocol equity in the protocol effectively by owning the PRISM tokens. And it’s people’s feedback and people using it that makes the protocol a success. And so, if there’s any questions or any follow up, obviously, we have our Resources page at the top of our bio on Twitter, we have Telegram where me, Ryan, Jimmy, Cristiano, any of the people on the team are always happy to answer your questions, Discord as well. So please keep all feedback coming. Let us know your experiences, I really want to see what APRs people are getting, that’s been fun to watch and fun to see how people are using AMPS. So please do keep it all coming and thanks very much for being on the Spaces.

RyanLion 1:32:14
Thanks, Hyperion. Thanks, everyone. We’ll catch you all soon.

Finn 1:32:17
Thanks for checking out another episode of The Ether. That was the Prism Farm Launch AMA. Recorded on Monday, March 7th 2022. This episode of The Ether was brought to you by Luart. Luart is the first gamified NFT platform built on the Terra network. Luart provides a seamless minting and trading experience all while earning you rewards just for being a user. Be sure to follow them on Twitter and join the community in the Discord server for the most up to date news and announcements regarding all the hot new NFT launches, platform upgrades, and new projects hitting the secondary marketplace. Are you ready to #PutYourHelmetOn and join the movement? Find out more This episode of The Ether was also brought to you by WeFund. WeFund is a community crowdfunding cross-chain incubator on Terra and it’s the first launchpad that implements a milestone funding release system to protect investors. All money raised for projects is deposited in Anchor Protocol and it’s refundable, and all decisions are based on community voting power. WeFund is community focused and designed to be a user friendly experience for both project creators and investors. Be sure to follow them on Twitter and join the Telegram for more information. Links are in the show notes and check them out online at TerraSpaces appreciates the support from all our sponsors. For, I’m Finn. Thanks for listening.