Prisma mkUSD

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Discover Prisma mkUSD's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Prisma mkUSD?

Prisma mkUSD (MKUSD) is a decentralized stablecoin fully collateralized by liquid staking tokens (LSTs) on the Ethereum platform. It is minted on the Prisma Finance protocol, a non-custodial and censorship-resistant borrowing platform. mkUSD is incentivized on Curve and Convex Finance, allowing users to receive trading fees, CRV, CVX, and PRISMA on top of their Ethereum staking rewards.

How is Prisma mkUSD used?

Prisma mkUSD (MKUSD) is a stable cryptocurrency token pegged to the US dollar, designed for use as a means of payment and value storage within the cryptocurrency ecosystem. It is part of the Prisma decentralized borrowing protocol, which allows users to mint mkUSD by collateralizing it with liquid staking tokens. This over-collateralized stablecoin is traded on various exchanges, including Curve and Balancer, and can be used for transactions and value storage.

How do I store Prisma mkUSD?

To store Prisma mkUSD (MKUSD) tokens safely, follow these steps:

  1. Set up a crypto wallet: Choose a reliable crypto wallet that supports the Ethereum network, such as Trust Wallet or MetaMask. Download the wallet's Chrome extension or mobile app from its official website.

  2. Register and set up the wallet: Complete the registration process and set up your wallet. Make sure to keep your seed phrase safe and note your wallet address, which you will need later.

  3. Transfer MKUSD to your wallet: Once you have purchased MKUSD, transfer it to your crypto wallet. Ensure you have the correct wallet address and network settings to avoid any errors.

  1. Store your private keys securely: Keep your private keys in a safe and easily accessible location. This will allow you to manage your MKUSD tokens and other assets within the wallet.

By following these steps, you can securely store your Prisma mkUSD tokens and manage them efficiently.

How to buy Prisma mkUSD?

To buy Prisma mkUSD (MKUSD) tokens, you can follow these steps:

  1. Decentralized Exchanges (DEXs):

    • Curve (Ethereum): This is the most popular exchange to buy and trade Prisma mkUSD, where the most active trading pair is MKUSD/USDC.
    • Uniswap V2 (Ethereum): Another popular option to trade MKUSD tokens.
    • Balancer V2: This exchange also supports trading of MKUSD tokens.
  2. Peer-to-Peer (P2P) Marketplaces:

    • Symlix: This platform allows users to browse offers from other users and buy MKUSD tokens using various payment methods like Visa, Mastercard, and more.
  3. Credit/Debit Card Purchases:

  • Atomic Wallet: You can instantly buy MKUSD with credit or debit cards online, with low fees and fast transactions. They accept Mastercard and Visa, and offer 1% cashback.
  1. MetaMask Integration:

    • Add MKUSD to MetaMask: To view your token holdings and trade on decentralized exchanges, you can import MKUSD as a token by copying its contract address (0x4591dbff62656e7859afe5e45f6f47d3669fbb28) and importing it manually or using MetaMask's chrome extension.
  2. Other Resources:

    • Coinscan: This platform provides a list of exchanges and markets where you can buy Prisma mkUSD, along with a step-by-step guide on how to do so.

Before making a purchase, ensure you understand the fees, trading volumes, and market conditions to make an informed investment decision.

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History of Prisma mkUSD

Prisma mkUSD (MKUSD) is an over-collateralized stablecoin from Prisma Finance. The stablecoin is designed to maintain a stable value, which is pegged to the US dollar. This is achieved through a collateralized mechanism, ensuring that the value of MKUSD remains close to $1.

The history of Prisma mkUSD can be traced back to its launch, with significant price movements recorded over time. The all-time high price of MKUSD was $1.03, which was reached on May 16, 2024. This high point indicates the peak value the stablecoin has achieved so far.

On the other hand, the all-time low price of MKUSD was $0.9393, recorded on May 28, 2024. This low point shows the lowest value the stablecoin has traded at.

In terms of recent performance, MKUSD has experienced a decline of 0.80% over the last month against the US dollar. Despite this, it has outperformed the broader crypto market, which has seen a decline of 8.90% during the same period.

The trading volume of MKUSD has been significant, with $807,113 worth of the stablecoin traded in the last 24 hours. This volume indicates the level of market activity and liquidity surrounding the token.

Prisma mkUSD can be bought and sold across multiple crypto exchanges, with Uniswap V2 (Ethereum) and Curve (Ethereum) being the most active exchanges based on trading volume and trust score. The stablecoin can be purchased using a decentralized exchange (DEX) and a base cryptocurrency such as Ethereum or stablecoins.

Overall, the history of Prisma mkUSD reflects its performance as a stablecoin, with price movements influenced by market conditions and trading activity.

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How Prisma mkUSD works

Prisma mkUSD, or MKUSD, is a decentralized stablecoin that operates within the Prisma Finance ecosystem. This stablecoin is fully collateralized by liquid staking tokens, which means that its value is backed by other cryptocurrencies that are actively generating returns through staking. This collateralization ensures that MKUSD maintains a stable value, typically pegged to the US dollar.

The Prisma Finance protocol allows users to mint MKUSD by depositing their liquid staking tokens as collateral. This process is decentralized, meaning that it operates without the need for a central authority or intermediary. Users can then use their minted MKUSD for various purposes, such as lending, borrowing, or trading.

One of the key benefits of MKUSD is its ability to provide a stable store of value within the volatile cryptocurrency market. By being backed by liquid staking tokens, MKUSD can maintain its value even when the broader market experiences fluctuations. This stability makes it an attractive option for investors seeking to mitigate risk or for those who need a reliable medium of exchange.

The Prisma Finance ecosystem also includes a governance token, which allows holders to participate in decision-making processes and shape the future of the protocol. This governance mechanism ensures that the development and management of MKUSD are community-driven and transparent.

Overall, Prisma mkUSD offers a unique solution for those seeking a stable and decentralized store of value within the cryptocurrency space. Its collateralization by liquid staking tokens and community-driven governance make it an attractive option for investors and users alike.

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Prisma mkUSD
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Prisma mkUSD's strengths

The token Prisma mkUSD (MKUSD) has several strengths that make it attractive to users and investors:

  1. Fully Collateralized: mkUSD is fully collateralized by liquid staking tokens (LSTs), ensuring that the stablecoin is backed by a robust and reliable asset base.

  2. Low Volatility: mkUSD trades within 50 basis points of its peg to USD, making it a less volatile store of value compared to other cryptocurrencies.

  3. Capital Efficiency: The stablecoin is incentivized on Curve and Convex Finance, creating a capital-efficient flywheel where users can receive trading fees, CRV, CVX, and PRISMA on top of their Ethereum staking rewards.

  1. Decentralized and Immutable: The Prisma codebase is completely immutable, based on Liquity, creating a robust protocol and truly decentralized stablecoin with favorable and flexible collateral parameters.

  2. Diverse User Base: mkUSD is useful for a diverse set of actors within the DeFi space, including holders of liquid staking tokens and issuers of these tokens, who can benefit from using Prisma to deepen liquidity and incentivize actions.

  3. Inflation Control: Although mkUSD has an uncapped supply, it has inflation control or burn mechanisms in place to maintain its value and stability.

These strengths make mkUSD an attractive option for those seeking a stable and decentralized store of value within the DeFi ecosystem.

Prisma mkUSD's risks

Prisma mkUSD (MKUSD) faces several financial risks:

  1. Market Risks: The stablecoin is collateralized by liquid staking tokens, which are subject to market fluctuations. If the value of these tokens drops significantly, the collateralization ratio may fall below the required threshold, leading to liquidation and potential losses for users.

  2. Collateral Risks: The failure of the underlying liquid staking tokens can result in bad debt to the protocol, causing mkUSD to depeg from its $1 value. This risk is particularly high if the collateral is concentrated among a small number of addresses.

  3. Oracle Risks: Prisma relies on accurate price feeds from decentralized networks like Chainlink. Failure or manipulation of these oracles can lead to incorrect collateralization ratios, faulty liquidations, and potential losses.

  1. Smart Contract Risks: The protocol is vulnerable to smart contract exploits, as seen in the March 28, 2024, incident where a lack of input validation allowed attackers to manipulate the migration process and steal around $12.3 million.

  2. Liquidity Risks: The Stability Pool, which houses mkUSD and serves as a collective guarantor of last resort, may not have sufficient liquidity to handle excessive liquidations, leading to potential losses for users.

  3. Governance Risks: The Prisma DAO, responsible for managing parameters, emissions, and protocol fees, may make decisions that negatively impact the stability of mkUSD or the overall protocol.

These risks highlight the importance of careful risk assessment and management for users interacting with Prisma Finance and its mkUSD stablecoin.

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Did Prisma mkUSD raise funds?

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Prisma mkUSD’s team

  • Prisma mkUSD Team: The team behind Prisma mkUSD includes seven anonymous core contributors who are also DeFi users and holders of liquid staking tokens (LSTs). They were inspired by Liquity, another collateralized debt protocol, and have emphasized community governance and continuous innovation in their platform.

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The fundamental analysis assistant for crypto value investors.

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