Curvance x Prisma Finance: Integrating mkUSD in Curvance Testnet
In our efforts to optimize yields across DeFi, Curvance is searching for the best yield-bearing assets to bring to its users.
This article spotlights another step forward in our testnet deployment: integrating Prisma Finance’s mkUSD stablecoin.
Every new integration helps us achieve our vision of becoming a chain-agnostic reward layer, improving the capital efficiency of assets all over DeFi.
To fulfill this role, we’re supporting the most relevant assets, since testnet launch. Among those, Liquid Staking Tokens (LST) play a strong role as one of the niches with the most growth and attention, with a market capitalization of over $41b.
Given the relative novelty of this primitive, coupled with the necessity to allow users to hold liquid-staked ETH, it’s clear LSTs are here to stay and grow.
As such, this opens up new avenues to maximize the capital efficiency of LST users and allow LST holders to freely use their assets as collateral on Curvance or to borrow them.
For this piece, we’re introducing our partnership with Prisma Finance, one of the most important protocols in the LST sector.
On Prisma Finance
Prisma Finance is a decentralized borrowing protocol where users can deposit their collateral (wstETH, rETH, cbETH, sfrxETH) and mint the mkUSD stablecoin, which is fully collateralized by LSTs.
Aside from native ETH staking rewards, mkUSD holders benefit from further Curve, Convex, and Frax incentives due to Prisma’s treasury holdings.
In addition to their treasury being backed by some of the best DeFi yield tokens, Prisma also boasts ve/vl tokenomics for their native token — all of which will be inherited into Curvance’s yield offering.
As Prisma’s main purpose is to facilitate asset borrowing, the protocol comes with flexible collateral parameters tailored to its users and a growing suite of products reflecting the evolving LST landscape. This also includes expansion within the Liquid Restaking Token (LRT) sector, with its $ULTRA token.
Since its token launch in November 2023, Prisma:
-Has grown by over 400%
-Has reached over $335m in TVL
-Has a wide range of yield-bearing assets in their treasury and partnerships with DeFi giants such as Curve, Convex, and Frax
How will the integration between Curvance and Prisma work?
We’re very excited to collaborate with Prisma Finance. As part of the integration, Curvance will support mkUSD as a lending asset in our testnet.
Starting with this initial integration, Curvance users will be able to deposit assets and access the mkUSD stablecoin and its native yield. This will bring more utility and liquidity to mkUSD, creating new use cases for the token.
Prisma has several key features, making it a perfect partner with Curvance:
- The protocol supports multiple LSTs as collateral: wstETH, cbETH, rETH, and sfrxETH. Furthermore, Prisma automates debt repayment using the yield generated from the collateralized LSTs.
- Multiple sources of returns supporting high APR: Prisma users can stake their mkUSD or PRISMA and benefit from protocol fees and further rewards in PRISMA, CRV, and CVX. The latter works as an additional layer compared to other LST competitors.
- Prisma Finance can leverage its involvement in the Curve Wars to increase the demand for mkUSD (e.g., bribes, competition for missions).
In perfect synergy, this integration will:
- Add utility to Prisma token holders with a new venue to borrow and lend their funds and benefit from an additional reward layer on top of their native collateral yield.
- Increase utility and liquidity of mkUSD as a lending asset on Curvance.
- Establish deeper synergies between Curvance and the LST/LRT sector.
The final vision for our protocols is to allow Prisma token holders to leverage Curvance to take loans against their collateral and benefit from an extra layer of yield.
As a token of appreciation to the Prisma Finance community and to demonstrate the alignment between our communities, we have gifted Prisma with a special guild role for mkUSD holders, who will receive early access to Curvance’s testnet and a unique role in our Discord.
What’s next?
Only by setting the most ambitious goals do we have the necessary motivation to work harder to achieve them. But sometimes, working harder means working together with others for the same purpose.
For this reason, we are aware of the necessity of creating strategic collaborations with partners aligned with our vision to become the chain-agnostic reward layer of DeFi.
Working with Prisma Finance through our integration will be a unique opportunity to bring mutual benefits for our protocols, amplifying our value proposition and the liquidity and utility of Prisma’s products.
The integration of mkUSD within Curvance can further contribute to the rapid growth of Prisma Finance within the LST ecosystem, with further possibilities to expand our collaboration into LRTs (by integrating their $ULTRA, LRT-backed stablecoin) and more.
Things are moving fast as we approach our testnet launch. Through our collaboration efforts, Curvance aims to create a broader network of projects, working together to create better cross-chain yields for users.
This is a strategic necessity given the increasing fragmentation and proliferation of new protocols daily.
As the landscape grows more complex, Curvance helps users navigate on-chain while enabling protocols to maximize utility for their yield-bearing assets.
Stay tuned as we release more articles and support more assets leading to our testnet!
Can you guess who’s next?
For more information on Curvance and Prisma, refer to:
Curvance
Twitter: https://twitter.com/Curvance
Discord: https://discord.gg/curvance
Website: https://www.curvance.com/
Docs: https://docs.curvance.com/
Prisma Finance
Twitter: https://twitter.com/PrismaFi
Discord: https://discord.gg/prismafinance
Website: https://prismafinance.com/
Docs: https://docs.prismafinance.com/
