FAQ

What is the difference between PRISM and xPRISM?

PRISM is the base token. Users can stake PRISM to receive xPRISM, a yield-bearing token.

xPRISM utilizes an accrual token model (price compounding). Yield is derived from a multi-strategy approach that includes cash and carry arbitrage, overcollateralised lending, blue-chip DeFi yield strategies and U.S. Treasury-backed assets.

Who can mint and redeem PRISM?

Minting and redemption of PRISM is available to primary KYC users only.

Who can use xPRISM?

xPRISM is available to all users.

What assets can be used to mint PRISM?

PRISM minting is invoked with USDO by a KYC and onboarded primary user. The smart contract dollarizes the equivalent amount of PRISM to be minted at a 1:1 rate for USDO.

Accepted collateral includes USDO, USDC, and USDT.

How does PRISM minting work?

A KYC and onboarded primary user invokes the mint feature with USDO. PRISM is minted instantly and sent directly to the primary user wallet.

USDO received will be redeemed for USDC by OpenEden and transferred to OpenEden’s account with Monarq Asset Management for execution and management of yield strategies.

How does PRISM redemption work?

A KYC and onboarded primary user transfers PRISM to the issuer wallet to initiate redemption and indicates the requested redemption collateral (e.g., USDO).

The issuer triggers a redemption request to Monarq Asset Management for the required amount of assets, which may require unwinding positions (minimum T+4 days for large requests, e.g., 2m in a single request). For smaller redemptions, funds may be drawn down from USDO holdings of the portfolio.

Once the required amount of redemption assets are received, the PRISM is burnt and the redemption assets are sent to the primary user wallet.

How do I stake PRISM to receive xPRISM?

The user invokes the stake function on the PRISM staking smart contract. Based on the prevailing xPRISM exchange rate, an equivalent amount of xPRISM receipt tokens will be minted for the user.

How do I unstake xPRISM?

The user invokes the unstaking function on the PRISM staking contract. Unstaking triggers a 3 days cooldown period. An equivalent amount of PRISM is calculated based on the prevailing xPRISM exchange rate.

PRISM to be redeemed is placed in an unstaking queue and no longer receives a share of the yield accrued. xPRISM received for unstaking is burnt from circulation.

How is PRISM priced?

There is a native oracle that prices PRISM to 1 USDC. This is a read function in the smart contract.

How is xPRISM priced?

There will be a native oracle in the smart contract with a convertToAsset rate. DEX liquidity pools will be set up and configured and may be used as the base for a Chainlink/Chaos Labs oracle alongside the native oracle if liquidity pools are sufficiently deep with sufficient volume.

What are the fees?

PRISM minting and redemption fees are 0

xPRISM staking and unstaking fees are 0.

What networks are PRISM and xPRISM supported on?

PRISM and xPRISM are supported on Ethereum.

Is instant redemption available?

PRISM instant redemption is currently paused.

What is the forecasted yield for xPRISM?

xPRISM has a forecasted blended APY ranging from 6–10%, depending on Monarq’s multi-strategy performance and prevailing market conditions.