Space Summary
The Twitter Space PRYZM ALPHA HOUR hosted by Pryzm_Zone. PRYZM ALPHA HOUR is a pioneering platform focusing on yield trading within the Layer 1 Blockchain ecosystem. The space delved into how innovation and community engagement drive the success of yield markets on this platform. By embracing blockchain technology, PRYZM ALPHA HOUR enhances security and transparency in trading operations, paving the way for a decentralized finance future. The discussions highlighted the team's commitment to continuous improvement and user-centric solutions, positioning PRYZM ALPHA HOUR as a key player in the DeFi space.
For more spaces, visit the DeFi page.
Questions
Q: What distinguishes PRYZM ALPHA HOUR in the yield trading space?
A: PRYZM ALPHA HOUR focuses on Layer 1 Blockchain for efficient and secure yield trading operations.
Q: How does innovation play a role in shaping the yield market on PRYZM ALPHA HOUR?
A: Innovation drives the development of advanced solutions and opportunities for users to maximize gains.
Q: Why is community engagement essential for PRYZM ALPHA HOUR's success?
A: Community engagement ensures feedback, adoption, and long-term sustainability for the platform.
Q: What benefits does blockchain technology bring to yield trading on PRYZM ALPHA HOUR?
A: Blockchain enhances transparency, security, and trust in transactions, promoting a reliable trading environment.
Q: How does PRYZM ALPHA HOUR contribute to the decentralization of finance?
A: By offering decentralized yield trading, PRYZM ALPHA HOUR enables users to participate in the DeFi ecosystem with greater autonomy and control.
Highlights
Time: 00:15:29
Introduction to PRYZM ALPHA HOUR Exploring the concept of Layer 1 Blockchain for innovative yield trading opportunities.
Time: 00:25:17
Innovative Solutions for Yield Markets Discussing the platform's approach to revolutionizing traditional yield market practices.
Time: 00:35:40
Importance of Community in PRYZM ALPHA HOUR Highlighting the significance of community feedback and engagement for platform growth.
Key Takeaways
- PRYZM ALPHA HOUR focuses on yield trading on Layer 1 Blockchain.
- Innovation drives the yield market, offering opportunities for future gains.
- Mainnet launch signifies a step toward accessible yield trading.
- Community engagement is crucial for the success and growth of PRYZM ALPHA HOUR.
- Embracing blockchain technology enhances transparency and security in yield trading.
- The platform aims to revolutionize traditional yield markets with advanced solutions.
- Yield trading on PRYZM ALPHA HOUR opens new avenues for users to explore decentralized finance.
- The team behind PRYZM ALPHA HOUR is dedicated to continuous improvement and user satisfaction.
Behind the Mic
Morning Greetings
Good morning. Good morning. How are you all doing today? Hello, sir. This is Toki Busa, filling in for the blonde broker. She is taking care of some personal stuff today. And I know that our other special guest, Melina, is on her way as well. She's currently finishing up a client call, from my understanding, but happy to be here.
Technical Difficulties
Vice. I am just trying to connect my headset so hopefully you can hear me okay. I can definitely appreciate that. Spaces hates me. It's okay, Ali. I promise it'll get better one day. Maybe. I think so. Trying to go again. Welcome, Trev. How are you doing today? Thank you for joining us from door hacks. Gm. Gm. Sorry, I think I was having some technical difficulties. Can you guys hear me okay? Can definitely hear you now. Glad it's working out okay. For sure. Awesome.
Current Projects and Events
How's it going? How are things over at Dora hacks? I mean, we have so much cool stuff going on right now. Right now I'm busy kind of putting the finishing touches and wrapping up everything for our big event in Singapore. Right now we're hosting a kind of a one day summit. 8 hours, all alpha, all day, big projects. Everybody from Eigen to Babylon to. I think we might have Celestia there. But we have tons of different projects. There are tons of different investors as well. And it's going to be that token 2049, like the day before, so on the 17th.
Exciting Upcoming Event
So if anyone's in town, you guys included, of course. So you're going to be like the real kickoff event is what I'm understanding it as. I mean, you call it what. It's what you want. I'm not calling it that, but, like, I don't think we have any competition that day. You know, we got. It's. It's right where 2049 is. It's in the same general area. It's at Chimes hall. It's like a historic. I don't know if it's a national monument, but there's a lot of rules that come from the government in regards to this place.
Venue Description
But it looks like a giant cathedral. And they're like, we only do weddings here. It's like, well, you're expanding. From weddings to web three. You know, it all makes sense in the end. I'm here for it. That's a nice. It's. It rolls off the tongue. From weddings to web three. Can you guys hear me okay, now is this my. Is my mic working better or not? Yes, you're definitely good there. Okay, nice, nice. All right, cool.
Introduction to Trev
I think we've I think we've got enough people here to get started. Yeah. Trev, thanks very much. Thanks very much for coming. We obviously, I guess for those that don't know, Trev is part of Dora hacks. So maybe before I give, like a bit of a prism update, Trev can kind of introduce himself and Dora hacks and kind of what they do for the ecosystem. And then I can give a little bit of an update on some of the prism announcements and we can go from there.
Trev's Introduction
Yeah, it sounds good. I can talk some more. I can definitely talk. I love to talk. All I do is talk, actually. But yeah, so our company is Dora hacks. We've been around for a while. We started with, like, in person hackathons, but we pivoted to, like, online to an online hackathon platform. And right now we're one of the market leaders in hackathons and global hackathons online. We got 130, 40,000 developers on our platform, ecosystem agnostic.
Dora Hacks Achievements
I'm going to try to speed through this as well. But a lot of major ecosystems use us or have used us in the past tens of thousands of projects or maybe actually. Yep. Projects have been built on our platform, which is really cool. There's a lot of numbers here. I'm not the numbers guy, but we have tons of projects that have come to the platform, and we also do a lot of infrastructure stuff as well. We have our own chain.
Focus on Decentralized Technology
We built some really cool decentralized governance technology that a lot of the chains and cosmos use right now. We do a lot of stuff in the realm of grants. I speak our public goods grants programs in Cosmo. So if you're a public goods project, I'm trying to give away money. I've never known it hard to be, to give away money, but apparently it's hard to give away money. But if you're building public goods, reach out.
Grants and Support
To me in cosmos, we do all sorts of other stuff as well, to grant on other chains, to venture to. We do a lot of stuff, actually. But if you're a team that needs help with hackathons, reach out happy to support good ecosystems and good founders doing great things. That is a jumble of words, but there you go. Got a lot of stuff going on. But it's, you know, to reiterate, it's like, it's kind of cosmos wide, sort of chain agnostic basically on the cosmos, isn't it?
Partnerships and Funding
It's not like specific chains, but then you run your hackathons in partnership with some chains and some of that's funded through this sort of public goods funding, right? Yeah, I mean, so we have different components. We have the hackathon element, which any team can come and run a hackathon on our platform for free, by the way, you can come around your hackathon for free and we provide the submission infrastructure, the voting infrastructure, all sorts of stuff on that end.
Infrastructure and Partnerships
And then we've kind of moved on to building our own kind of voting technology and grant technology that gets used in the interchain and cosmos. We're agnostic in terms of agnostic even outside of cosmos. Like we work with a lot of big ecosystems. Even outside of that, from Aptos to Clayton and dozens of others. You can come and check us out. Doorhex IO. I suppose I'll plug it.
Referral Campaign Launch
Do it, do it. There we go. I like it. That was a good plug. Cool. All right. And then what would I say? Yeah, we've got, so everyone we have, yeah. As usual, like, please do like pop your questions today. Like we got a couple of things we're going to talk through, but like any general questions you have, please pop in the comments and we'll try and get through those at some point during the spaces and then we'll fire off some aWu, some yao, some POW and some OWU boost or whatever to whoever asks the best questions.
Engagement and Rewards
So you can have some fun on prism and learn to yield trade. But yeah, like in terms of updates, I know you. Have a better owu inside view. I can't, I can't do it. If I was like, I'm in public at the moment so I think if I launch my, that's the. That'S the best place to do. I don't know if, I don't know if I can, I need, while you're. On a space in public for everyone's.
Next Discussion Points
Staring at you, I need to lose some sort of bet to do it or something like that. We'll see how we go, but cool. Yeah. And then I, well then why don't. You give a little bit of background on yourself, Ollie, and what prism is doing right now. Yeah. So we like people that don't know we're a cosmos. Let one that is built with a complete focus on yield.
Focus on Yield Trading
So everything to do with yield trading, yield tokenization. And we are, yeah, we're in mainnet beta at the moment. What does mainnet beta mean? That means that we are, you know, the similar, same way as you kind of find, I guess, in like web two beta program. It's not the full like incentivized launch. What we're doing is launching with lower liquidity, giving people the chance to learn how to use prism before doing our full incentivized launch campaign.
User Experience and Rewards
The reason for that is that we sort of believe that we don't want people yoloing into prism without having had the opportunity to use it before. There's rewards and high yields and incentives. So we think it's best for users, most prudent if they can try out prism themselves in a kind of like beta environment. And so the other thing we've done is we've airdropped all of the people participating who've been supporting us through state drop and the early users of Prism, a lot of AWU tokens.
Recent Updates
And so that's kind of like their gateway to learning how to use prism and kind of like receiving their, receive some kind of like learn how to yield trade, basically. So that's kind of like what we're doing. The big milestone for us today was we've launched our referrals campaign. And so what does that mean? That means that if you're any sort of content creator, whether you're like a big content creator or you just kind of, you know, want to put a tweet thread together or want to create a video or want to publish an article or something like that, or even just introduce anyone to prison, they're going to be able to put you now as their referrer.
Incentives for Referrals
And that means that they'll be, anytime they use prism during our launch campaign, they're going to earn rewards and you're going to earn a bonus based on how much they use prism. The slightly different thing we've done on this compared to other referral campaigns that you might have seen is that normally you just get a referral code and people share a referral code at the end of tweets and threads and that stuff. What we're doing is we're also adding in an ICNs element.
ICNs Integration
And what ICNs is for people that don't know is the interchain name service. And so it means you link your wallet address that you choose. So it can be a fresh wallet if you want to, for privacy sake, or it can be your main wallet, whatever you prefer, and you can link your wallet to your Twitter address. And then that means when someone comes and joins prism and is like, okay, well, who referred me, who introduced me or who on, who wrote a good article or a, you know, posted a good video or whatever, all you need to do is actually enter their Twitter handle, so you don't even need to enter their referral code.
Launching ICNs Feature
So we've just launched that now. Like, you kind of want to get people referred before the points campaign starts because you're going to earn points as soon as the points campaign gets turned on. So, yeah, for those that haven't checked it out yet, check out our link on our Twitter and give it a go and let us know how you get on. And then we've got. And then fairly soon you can expect our kind of like full launch campaign.
Partnership with Injera
And then the other kind of key updates are we announced our partnership with Injera today. So for people that don't know, Injera is producing USDI, which is a delta neutral stablecoin that's very similar to Athena's USDE. So without getting into the technicals of delta neutral stablecoins, what it means is that you're going to be able to earn high and volatile yields, potentially on a stable coin. And those yields will be correlated to the demand for leverage and perpetual funding rates on centralized exchanges. And so what it means is you'll deposit some USD and they will go and buy some bitcoin and simultaneously open a short position on a perps exchange. And then that means that theyre not exposed to bitcoin price movements, but that they get to pick up the funding rate that you sometimes get or the highly negative funding rate that you sometimes get on centralized exchanges because everyones going bulls long on bitcoin on perps. But that basically means its going to be a super interesting product to trade yield on the, in January, are going to do a launch campaign where they kind of like reward yield trading on prism for USDI, their stablecoin.
Exciting Campaigns Ahead
So we're super excited about that one. And then we also coming up soon, we'd announced before, is we have the droplets campaign for Drop protocol, which is the liquid staking protocol on neutron. Currently they have liquid staked atom. And what you're going to be able to do is you're going to be able to bring your d atom over to prism and you're going to be able to swap it for more y atom if you want to kind of maximize your exposure to earning droplets, or you're going to be able to swap it to principal atom if you want to kind of maximize your fixed real yield on atom and buy atom at a big discount. So that is kind of like the main updates of the things we've got coming. So a few bits going on, but it's getting towards the exciting bit now.
Guaranteed Returns and Discounts
Now, you did mention Adam there at the end, and it does seem like there's a pretty big discount on Adam on Prism right now. Now, can you confirm that there's actually guaranteed returns of around, like, two? A lot of projects or coins or tokens in this kind of atmosphere are really guaranteeing 200%. How are you guys doing that? So what it what, so what happens on prism is you take it, you drop in an atom token, for example, and in return, you receive yield atom and principal atom, which are two tokens. The yield atom. If we use one year to maturity, as an example, the yield atom will pay you out all of your staking rewards in atom for the next year. So it just gives you a right to the staking rewards for the next year. And the p atom gives you the right to redeem your one atom at the end of the year.
Voting Power and Governance Rights
Those are both liquid tokens that you can trade, and their prices move up and down depending on kind of, like, market forces. And so what happens here is, you know, one atom equals one p atom plus one y atom. So if there's demand for yield atom, then it pushes up the price of yield atom, which means that p atom trades at a bigger discount to atom. So we look at a really simple example. What. What kind of happened here was, say, the one year p atom was trading at 90% of the value of an atom. Then that means that the yield atom was trading at 10% of the value of yield atom. Sorry, of atom. So you had one atom, 0.9 of that value was p atom, and 0.1 of that value was y atom. Now, because there was lots of demand for y atom, for some reason, that pushed down the price of p atom.
Leveraged Governance Power
So p atom went from being worth 90% of atom to being worth, say, 80% of the value of atom. And that means that meant the y atom went from being 10% of the value to 20% of the value. And so because that happened, it meant that you're buying atom in a. You're buying atom at 0.8 of an atom. And that means that in one year, you're spending 0.8 of an atom now, and in one year, you get one atom. And what was happening on prism was because people were pushing down the price of p atom on a maturity that was nearer. So the September maturity, it meant that you were getting huge discounts on p atom, which when you annualized that, ended up giving a 200% apy. I think I need to check the current values at the moment, but I still think you're getting some huge discounts right now on p atom.
Community Interaction and Governance
And so in those situations, owning p atom can be really good. And it is a real yield. It's like a guaranteed fixed yield. Because I know if I spend 0.8 of an atom one now, that's going to give me one atom at maturity, and I can either hold it to maturity or I can trade it and take profits when the market corrects. And so, yeah, so we had those situations. And in those situations, buying p atom can be great. And also buying the liquidity pool token that contains all the p atoms can also be a great way of getting exposure and taking advantage of that. So that was. So that was that. I hope that made sense. Ask me, tell me if another that didn't make sense.
Governance Rights with P Atom
Trev, it seems that you have, like, a question on that one. You want to go for it? Yeah, all this seems awfully for me. I feel like I'm having deja vu with prism for obvious reasons. Yeah, right. For p adam, do I get your governance rights with p adam? Yes, I do. Okay. Yeah, so we need to turn that on the web app. But what we actually, what p atom does is actually gives you the right to vote on atom governance. And one of the kind of cool things about it is say that. Say that there's a million atom tokens in prism, for example, that people have, effectively, they deposit atom tokens. They mint p atom and yatum if p atom holders can vote on atom governance proposals.
Leveraging Governance Power
So like the Dora hacks funding proposal or the Mars protocol atom proposal, atom liquidity proposal, that's just happened. So what's cool about it is, say, for example, only some p atom holders care about a vote going on in governance. Then if only ten p atom holders voted on that proposal, then their votes would be voting with all of the million atom. So you get this hundred x leverage voting power, effectively. Whereas normally in atom governance, if you don't vote, your validator votes for you. And that's that. It doesn't give power to the people that do vote, it just gives power to the validator to vote. Whereas on prism, if a million atoms deposited in prison and only ten p atom holders vote, they get 100 x voting power.
Transparent Governance Practices
So kind of, it's a sort of new way of kind of leveraged governance power. And I think once prism kind of like, amasses more atom, or injective or OSMO or whatever token people start kind of like paying attention to p asset holders or p token holders because they're going to be wielding quite a lot of leveraged governance power and they're going to be, I would think bribing is a funny word with voting, but they're going to be, you know, they're going to be, there's going to be very high leverage to kind of bribing those holders because ten p atom holders can vote with a million's worth. A million dollars worth of, sorry, a million atom tokens or more, for example.
Empowering Users
Does that kind of make sense? So you're saying people actually have the power this time instead of it just going straight to the validators. So that's pretty impressive right off the bat. But to think that only 10% could genuinely just like hundred x their control over the system, that means you really want to be paying attention to this on the regular. Anytime you see votes coming up, if you've got your p atom, you should be genuinely paying attention because you have the power, right? Yeah, for sure. And we as part of, I guess many people on the call know like as part of state drop, we've been we've run validators on six different chains.
Active Validator Participation
So osmosis, injective atom, Terra, Celestia and dimension. And like one of the things that we've definitely noticed is like people will put up a proposal one of those chains and then they'll message around validators. So like there's a lot of like behind closed doors activities that happen that we sort of think is much better that it's transparent and out in the open because, you know, people realize that validators hold huge voting power. And you know, the reality is that actually that voting power should be with users and clients. And so like I, you know, ultimately with the token holders. So we kind of wish that those sort of behind closed doors dealings that go on where you'll get messaged around by whoever's put the governance proposal up and it's like, hey, can you vote for our governance proposal please?
Community Engagement and Transparency
And actually sort of it should, you know, that should be going to p atom holders and it should be more transparent and there should be kind of like, hey, p atom holders, if you vote for our governance proposal, we would, you know, we would be willing to airdrop tokens to you or whatever it ends up being. And all of this stuff can happen in a transparent way is sort of our ideological view of it. So it sounds like no matter what, if you hold Adam or p Adam, you're pretty much winning here, because if you're holding Adam, you're getting massive returns along the way. But if you're holding P at him, you're actually going to be a genuine part of the community.
Empowering Community Participation
You get the voting rights. You're not worried about validators, like, taking over your votes in any way, shape or form. It really seems like you're getting the best of both worlds. Trev, what you got? Yeah, actually, I like, I believe in governance longer. Like, I believe that decentralized governance, super important. Turnout, super important. A lot of people don't care, though, unless there's incentives. And I think that validators, we delegate to them not just for yield, but we also delegate to them for because we trust them. And if they're not voting the way we want, we can always redelegate.
Challenges and Solutions in Governance
That being said, long term, I do like a solution like this. In the interim, it's possible to have low quorum counts and did not get like critical things passed, especially when, like, you know, expedited gov proposals on the hub are a thing now, which we're finding out, you know, you need to move fast. So mobilizing people can be a challenge sometimes. And the backroom dealings do happen. You know, it's been happening forever. Political campaigns happen and, you know, having to do them in the open forum, I think makes a lot of sense to speak directly to the people.
Potential Enhancements for Voting Systems
One caveat to the validator thing is, like, you can actually override the validator vote of your ada by actually voting. I'm not sure if people know that a validator votes the wrong way for you. Like, you can still vote and like, your adam goes to wherever you vote. Question, though, regarding p adam. So if I buy p adam and I vote for a proposal with my voting power, is that p adam somehow, do I have to lock it up in order to vote? Yeah. So you have to, or can I. Vote and then sell?
Voting Mechanics Explained
So what you do, the way that it ends up working on prism is basically what matters. What prism does is it aggregates all of the votes of everyone that holds p atom or c atom in this case, which is just the normal prisms atom liquid state token. So what prism does is it kind of aggregates the votes of all of those. And then basically there is a snapshot date just before the actual governance proposal on the, say, cosmos hub closes, for example. And at that snapshot date, if you're holding the atom or p atom token, then your vote gets counted so you don't have to lock up over any time other than the snapshot date.
Snapshot Voting Mechanism
The snapshot date for c atoms actually just done for the atom. LST is just done on, you know, just by holding it in your wallet. P atom for accounting reasons you just have to stake into a voting contract. But you can immediately unstake whenever you want. So you only need to be, you can vote before the snapshot, but your vote is only counted once the actual snapshot happens to. Very interesting, very interested in this, thanks.
Innovative Governance Solutions
No, I think it'll be, I mean what we kind of want to have is, I mean we mentioned it to the informal team when they were first thinking about Hydro. It's like actually like we sort of built this governance bribing you know, proposal here and actually like we don't think, we sort of don't believe the solution to get extra voting power is that you should have to lock your tokens away for a year or two years and take like huge price risk. Because just because you don't want to take huge price risk doesn't mean you aren't a informed person who would have a positive contribution to make into governance.
Flexible Token Management
I think to be honest people that have people doing a lock at them for two years are like, you know, definitely a different breed and like fair play, like fair play to them. But I wouldn't, you know, it's definitely not something that I particularly like to do. So I think, you know, we want to kind of like have this alternative solution and obviously these things reached escape velocity when the amount of atom in prism is significantly higher. But that's what will happen with, hopefully happen with the launch campaign we've got.
Highest Real Yield
The reality is there's nowhere paying a higher real yield on atom than prism. You can look now, you can hold a LP token that contains a the atom p atoms and atom LST and that's paying something like 37% or something at the moment. Like just normal liquid staked atom pays 17 or 18% APY and if you hold a principal token which is atom at discount you're getting a fixed yield of 20 or 30% now. And if you hold the atom liquidity pool token pure real yield, you're getting 30 something percent I believe.
Funding New Protocols
So like on top of that if you start getting paid for bribes or you start getting paid for prism rewards and prism incentives it's going to be by far and away the highest real yield. And what we, part of the thing with Dora hacks for example Trevor, you know, public good stuff like as we've spoken about before, like public good stuff obviously is super important to ecosystems and I think like it's a lot more palatable for people to pay for things like public goods with yield rather than necessarily paying for it out of their principle.
Innovative Funding Approaches
Because if you're kind of like, I don't know where it's just psychological, but like if I feel like if I'm giving someone something that I own, just transferring it right away to their wallet, I feel like I'm sort of donating a big amount. Whereas if I say to someone, do you know what, you can have a year's worth of my yield, it's a public good service, I'm going to keep my principal exposure and you get to have my yield for a year or something like that. We think this is hopefully a really good way of funding things.
Tokenizing Yield for Ecosystem Support
And the big difference for cosmos, for the interchain, I should say, versus say on Ethereum, is like you have these proof of stake assets that have high staking rewards and good cash flows to them. And repurposing those cash flows so they get transferred from willing donors or willing sellers to willing buyers I think is a really positive thing for the ecosystem. And that's why tokenizing the yield for a defined period of time kind of facilitates that.
Changing Investment Dynamics
Its definitely a different process, but its one that I really appreciate because I can think of a plenty of times where putting in your initial investment you kind of feel like its a heavier weight on you, where in this situation your investments going in and its getting to sit there and instead of you losing that right off the bat or potentially disappearing in some way, shape or form, you're just giving away the yield into the investment pool that you're working towards. And I feel like that's honestly a lot easier, as you said, for people to handle.
Balanced Investment Approach
It doesn't feel like you're making maybe, let's say as large of a commitment and it really gives you the opportunity to see how your yield is being used and what's going to be happening along that time period. So it still feels like you're able to invest, but you're not losing your initial investment along the way. You're getting to just genuinely enjoy the benefits. Exactly. And like one of the first apps that will get launched, built on top of yield tokens, is effectively like a yield token launchpad where people can just deposit their yield token, they can withdraw it at any time, but they get to keep their principal token, they deposit their yield token and they get to buy tokens in new protocols or buy points in new protocols and the teams can fund themselves with the yield and users get to receive tokens in the protocol and that can be like pre launch tokens and the users can receive points or non transferable tokens or transferable tokens if the teams want.
Expanding Opportunities for Investors
Or that can be like post launch tokens. So it kind of like, we think it'll be a new way of funding lots of different things. And so yeah, yield token Launchpad is going to be one of the kind of like first main use cases. Is this similar to, is this like a rebuild of like pylon? So pylon basically did you would deposit, if I remember rightly, correct me if I'm wrong, like you would deposit UST and your UST yield would buy you tokens in new protocols, is that right? Yeah, something like that. Yeah, exactly. So it could be something similar like that.
Evolution of Funding Models
But the difference with pylon, you had to lock up all of your UST. So if you had $100 worth of UST, you'd have to lock up your full hundred dollars. And over the next year anchor's 20% yield, the $20 that your hundred dollars earned would slowly be used to buy tokens in a new protocol. With Prism, what you with Prism, what you're going to be able to do is you're going to take, say, your 100 UST gets split into a yield token and a principal token or your 100 USDC or USDI or whatever it is gets put into a yield token or principal token.
Yield and Principal Tokens
You have a yield token that's worth $20, say, and a principal token that's worth $80. You're going to be able to keep your principal token and you can provide liquidity with it, trade it, use it to borrow against or whatever you want to do. And you only need to deposit your $20 value ust yield token. And you can use that yield token to farm tokens in these new projects and you'll be able to withdraw your yield token at any point if you want. And so it's like a lot more capital efficient way of doing it. And it also means that if I wanted to go levered long tokens in the new protocol with Pylon, I couldn't really do that because I only have 100 ust and I need to deposit that whole 100 ust. Whereas in this situation, if I've got 100 USDC, what I can actually end up doing is I can actually just swap that for five yield tokens if I want and then I can five x my exposure to the new protocol. So it kind of allows people to choose the view that they want.
Demand and Price Dynamics
And the more demand there is for yield tokens, the higher it pushes up the price of yield tokens and the bigger discount it starts giving on principal tokens. So it's kind of a flywheel effect that if there's big demand for one token, then it increases the demand for the other token because it makes it traded a bigger discount. Does that kind of make sense? So it's some similarities. Yeah, yeah. It's really cool that you're doing that. You know, this kind of technology, you know, like you mentioned, terra was a thing. We tinkered a lot with this kind of, these kind of mechanisms on terra. You know, we're protocol where we kind of did this with charity endowments, right? Where you can do like perpetual charity funding in this kind of way.
Opportunities for Community Engagement
Like, yield goes to charities. Even the same thing with public goods funding, same thing in the case that you're talking about. And then there's also like, another crazy one that I don't think people have really cracked yet, which is like, you could actually do this with like, subscription models and like, solve for subscription as a service as it is right now. Yeah, I really like. So, yeah. So really jazz about what you guys are doing. Yeah, I think it's like we. So we basically. So we're doing this state drop campaign at the moment. So we've done. For those that don't know, we've not raised anything privately from VC's. We really strongly want to democratize ownership of the prism token as much as possible. We don't want to have private capital controlling a large amount of token supply.
Community Focus in Token Distribution
If we can avoid it. We would rather give tokens to. To a wider amount of community members. Like, so far it's been working. We have like 550,000 wallets that have participated in stake drop, which we're super excited about because we'd far rather do that than have five VC's controlling that same amount of tokens. But one of the things we realized with that is we're running validators that have a commission between, say, five and 7.5%. And there's some people that are like, you know what, I only want to spend a little bit of my commission. And some people that are like, well, actually, if the commission was higher and I could earn tokens faster if by paying a higher commission, I'd love to do that. And so that's part of the reason we think, like, a yield token launchpad works really well.
Choosing the Right Token Exposure
Because people can choose exactly how much of their yield they want to deposit into the, whether they want to get like full leveraged exposure to it, or they only want to deposit a little bit. Whereas unfortunately, with like a validator, you set the commission and that's it. Like that's the earnings rate for everyone that, you know, for each dollar that they pay in commission, they're getting ten prism tokens or something like that. I mean, another solution for it is you run a validate, like Dora Hacks did, like you run a validator that's 100% commission, and then people can delegate, say, if they want to pay 10% commission, effectively they would delegate 10% of their tokens to the 100% commission validator and keep the 90% with a zero commission validator, for example. But I think that gets quite complex from a UX perspective.
Customization and Tokenization Opportunities
And actually just by building it on prism, like, there's a lot more kind of like customization projects can do for their specific funding needs. And also they can also start like on the Cosmos hub, for example. It's not like we could mint non transferable tokens or NFTs for people that have been supporting us, whereas on prism you can easily do these things. I think it's like, we strongly believe there's going to be tons of interesting use cases for yield tokens. We're trying to create the primitive for that by enabling the swapping of yield tokens and principal tokens, and also the tokenization of those tokens in the first place. And then we think there'll be lots of interesting primitives that get built on top of that.
Preparing for Market Volatility
And yield token launchpad and yield streaming and yield swapping, yield funding, I think will hopefully be the good first proof of concepts for that. I mean, from my perspective, it definitely seems like you're putting more power in the hands of the people time and time again. I know that maybe on the front end initially it may be a little bit, I'm not gonna say overwhelming as far as the UX goes, but there are a lot of steps that you can genuinely take the time to understand and see where your money is flowing, but you're never losing your initial investment. So at the end of the day, that's still way better. That's way better than having to lock away your USDT or any other token that you've referenced at this point.
Analyzing Risks within P Token Dynamics
Yeah, this is just a nobody has a crystal ball, but are there risks to the p atom component. If somebody deposits like a metric ton of like y atom and everybody jumps to yadam and then like p atom is super cheap because the community wants yield over governance where in a big whale or something you come in and like pick up a lot of p atom and have a disproportional, maybe not disproportional but like a lot of voting power for really cheap. Yeah like if they, I mean there'd need to be price movements for that to happen, which I guess like if I can't see how they would end up doing it without exposing themselves to like massive price risk. Because then you need to get out of your piatom and you can either get out of your piatom, buy trading out of it, or you hold it to maturity.
Governance Power and Market Trends
So if something did happen, if something like p atom was trading at 0.8 of an atom and y atom was trading at 0.2 of an atom, and suddenly huge demand for yatom came along and pushed the price of yatom to say 0.5 atom, which meant p atom was trading at 0.5 atom, then yes you might have people that want to get governance power but youd also have a ton of people come in and be like hold on, if this has got a year to maturity and I can buy one p atom for 0.5 of an atom and I know that im going to get one atom out of it at maturity. Yeah im going to take 100% fixed yield or 100% guaranteed yield on my p atom. So it just makes it more attractive for everyone if the p tokens get cheaper and vice versa with the yield tokens.
Market Preference and Investment Strategies
Unless theres some fundamental change in the inflation rate or staking ratio or whatever of the underlying asset, huge demand for p token pushes up the price of that and makes the yield token look cheaper. Its just peoples market preference. Do people want to raise some cash by setting their right to future yield? Or people just want to buy a fixed yield because they want the certainty of having buying token at a discount and knowing the guaranteed yield that they're going to get. And these are the market forces that push around the prices. I'm kind of enjoying the fact that you can really choose your risk.
Assessing Risk Preferences
Either you can lay into it on the p side and you can get all the voting rights essentially, or you can go towards the yield side and you really again get to measure how much risk you want out of this. And so even if the prices were to vary, let's say if yield dropped down low and p was up high, people are genuinely going to take the opportunity to buy into yield, which then inversely causes p to drop down in price. But then you also have the low risk opportunity there of now being able to get that atom at the end of it, even if it is a year long. I really don't see downsides here. Is there anything that you could even see as a risk?
Understanding Token Purchases
Well, you just have to be comfortable with, like, the tokens that the tokens you're buying and, like, know what you're buying. And so, you know, realistically, like, if I have one atom right now, to me it seems silly holding one loose atom without earning any yield on that atom. So I would go and choose. I'd be like, okay, well, do I want to hold an atom liquidity pool token that's earning 30 something percent yield, or do I want to go and hold, buy some atom at discount and turn my one atom into one and a half atom or two atom over the next year? That's what you've got to do.
Strategies for Yield Maximization
It's like anything if p atoms, say, is trading at half the price of an atom. So you can swap your one atom token for two p atom tokens. You know that at maturity you've kind of like doubled your amount of atom that you had. That doesn't mean, like any token, like the price might end up going lower, in which case you could buy more. But because you're not leveraged, you can just hold your position and know that you're guaranteed that you're going to make two atom. There might have been an opportunity to change that into three atom, for example, which you missed off because you bought it 0.5 rather than a third of the value of an atom token.
Community Trading Practices
But like, for me, the way that I look at it, I try not to trade on prism because I feel, because I'm like, because I see all these yields and I'm like, I really want everyone from the community to trade it. And then that's why I'll tweet them. I'll tweet them out and stuff like that, because there's good opportunities out there and I think it's great people to learn. So I don't trade too much myself on there. But you might not catch the token perfectly, and it might move a little bit lower than when you bought it. But you know that if you're going to hold it to maturity, that you're exactly what your return is going to be if you hold the principal token.
Investment Strategies with Risk Management
So it's the way that I think is a good way of doing it is just setting a DCA on prism using pulse trade. So you can sit there and I say, right, like when the discount gets to 20%, I want you to start slowly buying the token. And so, like, if the token goes down even more, it's going to buy you even more at a bigger discount, but it'll, you set your threshold at which you want it to start buying the token at a discount for you. And that's like one of the trading tools that we're kind of, you know, super proud of is our pulse trade tool that allows you to set a limit price to buy a token at a discount or swap from one token into another token at a limit price.
Airdropped Tokens for Learning Experiences
So, yeah, so I definitely recommend people check it out. And that's part of the reason we airdropped everyone, these AWU tokens is so that they can go and try it out in a risk, like in a risk free environment. Like obviously some jeets didn't read the medium and are wondering why their airdrop isn't worth a kajillion dollars. But like the, but like, the point of AWU is like, it's a free way of learning how to use prism, and it means that you'll be at a massive advantage when the points campaign starts. And we want to help people in the discord and the telegram and teach them how to use prism.
Navigating Educational Resources
And if they've got any questions. And then to your point earlier on, regarding, you know, prism. Yeah, there's lots of new stuff for people to learn, which means new opportunities. And the volatility we're seeing in the market at the moment is providing some massive opportunities. So like, anytime you see a bit of volatility, like open, I'd like recommend like open up the prism web app and just see where, see where prices and yields are because there might be some like great opportunities to pick stuff up.
Future Enhancements and User Experience
And we're also building a deploying like a lite mode version. And so this lite mode version is just going to focus on like, these are the tokens you can buy in very much like a coingecko style way. This is just a simple swap page. And that's it basically. And this is your portfolio of the tokens that you own. And so there's the thinking behind that is like, you know, for most people, like, they don't want to be thinking about, do I mint this? Do I burn it? Do I need to stake it? Do I need to like unbond it. Do I need to bond it?
Improving Usability for the Average User
And all of these like different sort of processes and stuff you have to do like, you know, when you're on binance, you just pick a token. You like to look, you know, you look at tokens page or you look at Coingecko, then you just go buy the token on binance. And so whilst prism can handle all of the refracting and yield tokenization behind the scenes, you should just be able to pick a token with an interesting yield, read what that token is and then just buy that token if you want. So that's kind of like the way we're trying to do it.
Lighthearted Banter and Community Connection
Trev, hit me. One of your dudes. Is that a galactic punk that they're repping? Who's got the galactic punk? I don't know. Go take mo from your team. Yes, I still have one. Should I keep it? Okay, I'm getting mo up, mo. Yeah, definitely. We are big fans of our galactic punks. So, yeah, so mo's rocky one. I've got a, I've recently, I had a bull for ages, Luna bulls, just for the nostalgia. And then, and then we are, you know, one of the things with the awu token is you're going to be able to get, you are going to be able to use that to buy refracted beasts nfts.
Introducing New NFT Opportunities
I need you to do it. I need you just once. I can't, I can't do it. I'm gonna, I'll get kicked out of where I am if I do it. You owe me one, Ollie. The refractive beasts nfts, I've got one of those on my profile at the moment. There have been a couple of community members have earned them and they're going to be airdropped them as soon as the NFT's live, but the artwork's out and the refractive beast nfts for people that have like, you know, learned to trade, learned to yield, trade on prism with their awuhu tokens and. Yeah, and they're going to be able to buy refracted beast nfts with their awu.
Wrapping up Discussions
So that is the theory at least. And I was just thinking, did we get to, were there any questions that we, looking through the comments just before because I realized it's heading up in the air. I got a quick question. Ollie, are you saying it's the au token? Is that what we're talking about. There we go. I knew, I knew you'd be able to do a good one. Your one's much better than mine. That is, that was sad. That was a sad one. Now, now I want you to like, how would you do wai awu.
Engaging in Lighthearted Creativity
Wow. Okay. Maybe something like that. Okay. Okay. I think, I think we should, see. I can do that where I'm at and people won't, I mean, they will stare at me, but I don't care. I think we should start. I don't know if we've got it enabled in discord, but I think people should. Shit. There should be some sort of prize for the best. The best wolf howl in discord or something like that if they, people upload their video clips or whatever.
Discussion on Token Listings
But yeah, I was just looking through the comments. Anything else? When prism token and sex listing. Sex listings you're not allowed to talk about, as in you actually sign something with sexes that says you're not allowed to talk about it. So that isn't, if a project's just a FYI, like if a project is ever saying we're going to get a sex listing or I puts a sex listing on their roadmap or something like that, is probably normally a pretty big red flag, but the project's just trying to pump things up and for, wait.
Restrictions on Discussion
So you're saying you can't talk about it? You can't talk about sex? Yes, that's right. He can't talk about it. Very good. Very good. So you can't talk about sexist things like there's a, as a sort of NDA type requirement anyway. Abstinence is best here. Okay, man. Abstinence is best. Oh my God. Oh my God. Right. Get your dirty minds off of that. And then we've got, yeah, and then in terms of the prism token.
Prism Token Campaigns
So, yeah, the referrals campaign, that's going to give people time to introduce others to Prisma so that they can get their referrals lined up before the points campaign starts. And the points campaign is going to start probably in a couple of weeks. That's going to run for say a month or two is the plan. And then the prism token is going to get launched after that. Everyone who participated in stake drop is going to get airdropped their prism tokens when the prism token launches. Everyone who participates in the points campaign is going to get airdropped their prism tokens when it launches. So that is when the prism token is coming.
Maintaining Awu in the Ecosystem
And then Nachandi zero one will awu be in use after prism token launch or will it be replaced with prism tokens? Awu is not going to be replaced. Awu has a special place in our hearts forever and awu, exactly. Awu forever. And Awu is going to have an extremely high yield, random yield forever, and it's going to be the way for people to learn to use prism. And people are going to get airdropped prism tokens based on how well they've been yield trading on Awu. And so that is it. It's not being replaced. Awu is a gas token on prism. You can use it to pay gas. You're going to buy nfts with it. You're also just, you know, if you yield, trade it.
Switching Tokens and Stake Drop
You're also just a bit of a legend. And so that is what Awu is for. So don't ever worry that Awu is going away. That's, that is the, that is the questions, isn't it? For today, has anyone got anything else they want to know? How we feel, trev, how we fit, trev, how are we feeling? Yeah, I got a thing. Shameless self promotion. I actually put the public goods grants in the event thing in the thing at the top. But I do have a question. So you're saying that you can't talk about sex listings because there's an NDA and you are unwilling to talk about sex listings.
Stake Drop Inquiry
And is the stake drop still open so I can move all of my atom to your state drop? Yes, state drops still open. And there's going to be sort of big rewards for people that kind of end up moving their atom over to prism. And you can actually move your atom over in. Stanley, move delegated atom over instantly. Using the liquid. Well, no, using the liquid staking module. So there's actually a button that you could just click that say, I have atom delegated to, I don't know, Coinbase's node, for example, and I actually want to move that atom over to prism. Most people think that you have to wait 21 days, you have to undelegate and then move your atom over to prism.
Liquid Staking Module Explanation
Actually, the liquid staking module on the cosmos hub means that you can actually just instantly convert atom that you have delegated on the cosmos hub to liquid staked atom on prism. So that's when the time comes or when you see some good yield opportunities on prism. That is a great way of just moving delegated atom instantly over to prism so that you can buy a cheap principal tokens or the atom liquidity pool tokens so that is something I'd recommend. And then. Yeah, on your next one. Yeah, look, you're really making this easy for people.
Concluding Remarks
There we go. That's impressive. We try. And then we got. And. Yeah, on the centralized exchange thing, literally, it's like, one of the first things you do. You have a conversation with them and they send you over a piece of paper that basically says you're not allowed to talk about it. if you talk about it, then, Then you absolutely will not get listed. so. Oh, yeah. No, no. I. I'm aware of that. I was asking if you're not allowed to talk about it. I can't.
Discussing Awareness and Engagement
Correct. He is not allowed to talk about. Trev is better than I am at pulling the alpha out. Look at that. I don't know what's happening, am I. I'm not. Not allowed to talk about it? Is that right? Whoa. What do we do? Think about it. I don't know how to think about it.
Strategy and Communication
No, no, I don't. I don't. I don't. Like. Like, for us, like, I don't. I wouldn't want to. No comment. Well, no, just. Yeah, just, like, say no comment. I don't want people reading into stuff like, we. We. If we had announcement or something, we'll. We'll announce it. Like, we don't want. Like, we have. This is CT. We don't do that. We don't do things. Never.
Final Thoughts and Event Promotion
There you go. Right. Oh, my God. Is that the time. Run? Brilliant. All right. I would say Ollie pulling out the clock. Holy cow. That is the hour, isn't it? All right, brilliant. Thank you, Trev. How about you give us another shameless plug? I think we have work to do. We probably have work to do. Everybody get back to work. But shameless self promotion here.
Closing Remarks
Come to Singapore app chain day. Come and check us out. Come and decide where money goes in cosmos. Just go look at the link. I've talked enough. I don't know. I think people need to get your adam. Hopefully, this has made people think about cool things they can do with yields. And so if anyone wants to build cool platforms that kind of, like, use yield or repurpose yield, stream it to subscriptions or whatever, like, let us know and let Trev know.
Invitation for Collaboration
I guess. I'm in. Chat. I don't bite. There we go. All right, nice one. Well, that is. Thank you very much, everyone, for coming, and. Yeah, appreciate it. Hopefully, I've managed to record the space this time so people who couldn't make it can listen to it. But, yeah, thanks very much, everyone. And, yeah, I'd say, like, go check out the referrals link now and just quickly get your referral code at least and, you know, enter someone else if you see a good link as your referrer.
Final Encouragement and Goodbye
But, yeah, go and check it out and let us know what you think. Thanks very much, everyone. Ciao. Remember, there's probably already a code for action. Hilarious. You can use that one hilariously. Exactly. One question for you, Toki. What's the first rule of, I mean, sex listings. Brilliant. Right. On that bombshell, we're done.
Conclusion of the Discussion
Bye, everyone. Thanks for having me. Have a good day, everybody.
