Prisma Finance, an rising decentralized lending protocol, made headlines when its complete worth rose to $320 million, a staggering improve of $240 million in sooner or later. The rise coincided with the launch of the governance token PRISMA, marking a significant improvement for the platform.
Prisma Finance TVL chart (Supply: DeFiLlama)
Justin Solar’s alleged position in golf
XArkham monitoring knowledge revealed an enormous $110 million wstETH deposit on November 2 by way of an deal with linked to Justin Solar.
Up to now hour, a big deal with linked to Justin Solar has deposited $110 million of wstETH into the @PrismaFi swimming pools and minted greater than $60 million of the stablecoin mkUSD.
This deal with 0x9FC at present owns >60% of the wstETH deposited in Prisma. pic.twitter.com/3Xl1QRMICH
— Arkham (@ArkhamIntel) November 2, 2023
The deposited wstETH was used to mint over $60 million value of mkUSD stablecoins. At the moment, the deal with (0x9FC) has a dominant share of over 60% of the wstETH within the Prisma Finance pool, indicating important involvement.
PRISMA Token’s curler coaster journey
Regardless of the unprecedented rise in TVL worth, PRISMA, the platform’s native token, has witnessed a drastic drop of over 78% within the final 24 hours. The sharp decline in PRISMA’s worth raises questions concerning the sustainability of the rise and the doable implications of Solar’s involvement within the platform’s dynamics.
PRISMA 24-hour worth chart (Supply: CoinMarketCap)
Prisma Finance works as a decentralized lending protocol that enables customers to generate a stablecoin, mkUSD, backed by liquid staking tokens. Moreover, the protocol reportedly gives a number of layers of safety, together with a stability pool composed of mkUSD and a community of debtors performing as collective guarantors, strengthening the steadiness of the platform.