Prisma Finance, a rising decentralized borrowing protocol, made headlines as its whole worth locked (TVL) surged to $320 million, a staggering $240 million improve inside a single day. The surge coincided with the launch of the governance token, PRISMA, marking a major growth for the platform.
Prisma Finance TVL Chart (Supply: DeFiLlama)
Justin Solar’s Alleged Function within the Surge
Monitoring knowledge from XArkham revealed a large $110 million wstETH deposit by an tackle linked to Justin Solar on Nov. 2.
Up to now hour, a big tackle linked to Justin Solar has deposited $110M wstETH within the @PrismaFi swimming pools, and has minted over $60M of the stablecoin mkUSD.
This tackle 0x9FC at present owns >60% of the wstETH deposited in Prisma. pic.twitter.com/3Xl1QRMICh
— Arkham (@ArkhamIntel) November 2, 2023
The deposited wstETH was utilized to mint over $60 million price of mkUSD stablecoins. Presently, the tackle (0x9FC) holds a dominant share of over 60% of the wstETH within the Prisma Finance pool, suggesting vital involvement.
PRISMA Token’s Rollercoaster Experience
Regardless of the unprecedented surge in TVL, the platform’s native token, PRISMA, witnessed a drastic decline of over 78% within the final 24 hours. The sharp decline in PRISMA’s worth poses questions in regards to the sustainability of the surge and the potential implications of Solar’s involvement within the platform’s dynamics.
PRISMA 24-hr value chart (Supply: CoinMarketCap)
Prisma Finance operates as a decentralized borrowing protocol enabling customers to generate a stablecoin, mkUSD, collateralized by liquid staking tokens. Moreover, the protocol reportedly provides a number of layers of safety, together with a Stability Pool comprising mkUSD and a community of debtors performing as collective guarantors, reinforcing the platform’s stability.
