Prisma Fi and the rise of LSDs

The rise of LSDs like stETH & stablecoins like acUSD goes beyond leveraging $ETH.Here's what everyone can benefit from:• ETH as a super bond• A super efficient capital flywheel• Community-driven governanceA thread 🧵 on how @PrismaFi could reign the LSD primitive👇

@PrismaFi allows users to mint Prisma’s native over-collateralized stablecoin - $acUSD - backed by:• wstETH (Lido)• cbETH (Coinbase)• rETH (Rocket Pool)• sfrxETH (Frax Ether)• WBETH (Binance)

$acUSD won't be like other self-repaying stablecoins where rewards are sold & pushed back to collateral.The far majority of the self-repaying element comes from the APY of collateral like stETH/rETH, which would offset the interest to mint $acUSD.

Prisma's codebase is based on @LiquityProtocol and has branched into several innovations such as:🔵 Multi-collateral🔵 Self-paying loan positions🔵 A shared stability pool design🔵 veTokenomics to direct emissions

Besides @LiquityProtocol, Prisma is entering a space that is heating up🔥Another worthy mention is @LybraFlnanceLSD, who has also adopted the veTokenomics design to create a sustainable business model for $LBR and their stablecoin $eUSD.

@PrismaFi's own token - $PRISMA - could spur a potential battle for liquid staking providers like @LidoFinance & @Rocket_Pool by incentivise minting acUSD with their own LST by directing more $PRISMA emissions.

It will be interesting to see how the space between LSDs and stablecoins continue to morph together, taking synergies between the two to the next level.One thing is for sure, we'll keep a keen eye on how this unfolds 👀