WEB3
by BSCN
November 3, 2023
Prisma Finance, a rising decentralized borrowing protocol, made headlines as its total value locked (TVL) surged to $320 million, a staggering $240 million increase within a single day. The surge coincided with the launch of the governance token, PRISMA, marking a significant development for the platform.
Monitoring data from XArkham revealed a massive $110 million wstETH deposit by an address linked to Justin Sun on Nov. 2.
The deposited wstETH was utilized to mint over $60 million worth of mkUSD stablecoins. Currently, the address (0x9FC) holds a dominant share of over 60% of the wstETH in the Prisma Finance pool, suggesting significant involvement.
Despite the unprecedented surge in TVL, the platform's native token, PRISMA, witnessed a drastic decline of over 78% in the last 24 hours. The sharp decline in PRISMA's value poses questions about the sustainability of the surge and the potential implications of Sun's involvement in the platform's dynamics.
Prisma Finance operates as a decentralized borrowing protocol enabling users to generate a stablecoin, mkUSD, collateralized by liquid staking tokens. Additionally, the protocol reportedly offers multiple layers of security, including a Stability Pool comprising mkUSD and a network of borrowers acting as collective guarantors, reinforcing the platform's stability.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
Latest News
6h : 34m ago
Quai Network Sets Mainnet Launch for January 29, 2025
8h : 19m ago
Phantom Wallet Secures $150M in Funding Round Led by Sequoia Capital and Paradigm
10h : 4m ago
Does Donald Trump Really Plan to Establish a U.S. Strategic Altcoin Reserve?
10h : 49m ago
Donald Trump Could Make Crypto a National Priority With Executive Order: Report
January 16, 2025
Jio Platforms Partners with Polygon Labs to Enhance Services for its 450M Users
January 16, 2025
2025 Blockchain Trends: Why AI Will Drive Web3 Growth
January 16, 2025
Texas and Oklahoma Propose Bitcoin Reserves
January 16, 2025
U.S. SEC Seeks to Overturn Ruling Favoring Ripple in XRP Case