Liquid-Staking Token-Backed Stablecoin MKUSD Surges 27,000% in Under a Month 

Since the commencement of 2023, the size of the stablecoin system has decreased amid galore redemptions. However, caller stablecoin plus projects, specified arsenic Aave’s GHO, First Digital’s FDUSD, and Paypal’s PYUSD, person emerged. On September 1, a stablecoin protocol named Prisma Finance was launched, enabling users to deposit liquid staking derivative tokens for a token called MKUSD. Since its inception, the protocol has secured $55 cardinal successful locked value.

Prisma Finance Stablecoin MKUSD Joins $123B Fiat-Pegged Crypto Economy

Another stablecoin, MKUSD, has entered the stablecoin economy, a ample radical of fiat-pegged coins present valued astatine $123 cardinal arsenic of September 23. The stablecoin originates from a decentralized concern (defi) protocol named Prisma Finance, which officially launched connected September 1, 2023. Prisma’s stablecoin MKUSD is described arsenic a “non-custodial and decentralized Ethereum liquid-staking-token (LST)-backed stablecoin.”

In essence, Prisma users deposit supported liquid staking tokens into a vault to get MKUSD. If the collateral ratio drops beneath 120%, the vault tin beryllium liquidated. A stableness excavation takes connected the liquidated indebtedness and distributes collateral to providers. Supported collateral types are WSTETH, CBETH, RETH, and SFRXETH. The minted MKUSD tin beryllium utilized connected different defi platforms oregon aboriginal redeemed for the liquid-staking tokens (LSTs).

LSTs person go highly fashionable implicit the past 2 years and there’s 11.96 cardinal ether locked into LST platforms. At its launch, the Prisma task acceptable its borrowing bounds successful phases, and by September 15, Prisma had secured $30 million. Presently, defillama.com data indicates that Prisma’s full worth locked (TVL) is $55.16 million.

Etherscan shows the circulating proviso of MKUSD is 29.99 cardinal tokens. The token lone has a specified 129 holders and the “Stability Pool” address commands 71.39% of the full supply. A stability pool is fundamentally a mechanics utilized by defi projects that ensures the proviso of a stablecoin is ever backed. The second-largest MKUSD wallet is held by Curve Finance and it holds 14.30% of the MKUSD successful circulation.

Compared to the large stablecoins similar USDT and USDC, MKUSD is considerably smaller. It besides lags down newcomers FDUSD and PYUSD but surpasses GHO’s supply of 22,706,149. There are astir 368,787,867 FDUSD and 44,376,440 PYUSD. All 4 stablecoins – MKUSD, FDUSD, GHO, and PYUSD – are heavy concentrated, with the apical 100 holders successful each task controlling the bulk of the supply.

What bash you deliberation astir the Prisma Finance defi protocol? Share your thoughts and opinions astir this taxable successful the comments conception below.