Parsec Weekly #44
$PRISMA token launch and onchain shenanigans
$PRISMA launch
In late September we addressed the launch of Prisma Finance, a CDP protocol built on top of the Liquity codebase allowing users to deposit a variety of ETH Liquid staking derivatives (wstETH, rETH, cbETH and sfrxETH) as collateral and mint their native stablecoin mkUSD on an overcollateralised basis against it.
Prisma was experiencing modest growth through October as they slowly increased mkUSD debt caps over time but the launch of their governance token $PRISMA on November 2nd really took things to the next level as system TVL grew from ~$85m to $300m+ in a couple of days...
This rush of TVL reminds me of what we saw with the Aerodrome launch on Base earlier this year. There are clearly significant pools of capital (ETH in this case) on chain which are hungry for yield and willing to risk capital into relatively new protocols (although one can argue the risk here is lesser given the lindyness of the Liquity codebase).
One particular market participant has contributed disproportionately to the growth in TVL, namely Justin Sun. Mr Sun (0x9fcc67d7db763787bb1c7f3bc7f34d3c548c19fe) has deposited over 60,000 wstETH into Prisma and represents over 1/3 of current TVL with by far the largest position on the protocol:
In a market largely starved of yield, Prisma is an attractive proposition for those with idle ETH. To redeem $PRISMA emissions 1:1 there is a 50 week lock up period but one can can also claim immediately for a 50% haircut which seems to be the route most farmers are taking. Even with a 50% haircut for immediate claiming, the yields still look favourable despite the 1% mkUSD minting fee:
In order to avoid locking up collateral and the 1% minting fee, some farmers are buying mkUSD at market and proceeding to farm with it. With the current FDV of $PRISMA sitting at ~$700m and most farmers insta-claiming and dumping the token, it will be interesting to see where this yield-hungry capital flows next should the yields dry up as $PRISMA price inevitably dwindles.
Onchain shenanigans
-kezfourtwez
With BTC still bouncing around up at the highs it’s been a great week for alts and onchain degeneracy. Solana got severely squeezed and ran up almost 50% as horny shorts piled in and helped fuel the rally all the way to $46.
The emergent meme sector had a phenomenal first half of the week, with a few relatively fresh coins testing the $30-40m range and a slew of microcaps competing for liquidity amongst the $1-5m range. JOE and Smurfcat have both topped out after their run ups and are both currently experiencing significant corrections as are most of the coins that ran hard this week.
DMT is also up 50% off the back of their streaming platform going live. Sanko TV is a Friend Tech style system where streams are gated by ‘passes’ that are sold on a bonding curve, a Friend Tech integration is built on top allowing users to view streams if they hold one of the subjects keys. Viewers can choose to mint from an array of very Sanko style stickers for the streamer, these show up on stream and act as a gamified tipping mechanism. A portion of the ETH used to mint goes to the streamer and a portion goes towards buying back DMT.
This week marked the second exploit of a trading bot’s router in 10 days. Last week Maestro quietly deployed a new router, after sixteen hours a hacker found and executed an exploit that let them steal and sell any tokens that a user had approved on the new router in that time. They ended up getting away with around 280e and in turn sent many burgeoning coins briefly to hades.
Just six days later and the exact same thing happened to Unibot, this time to the tune of 355e. In both cases everyone effected was refunded. The funny thing is that both times ended up being bullish exploits. All the charts of the affected coins were getting bid because everyone was demanding a refund in tokens instead of ETH, so people were front running the Maestro buybacks, and then Unibot had to do the same because Maestro set the example. Many coins went on to make significant new all time highs in the hours following the exploit both times.
Below is a chart showing the flows coming from the affected wallets into the Unibot exploiters wallet, and the respective USD values.
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Nice
kkk