Prism Network (PRISM) – The Universal DeFi Servicing Hub

13 min readMay 16, 2021

Prism Network is an industry-first Universal DeFi Servicing hub. As a platform Prism Network brings multi-network scalability, funding initiatives, and cross-chain redistribution of tokens, all under one platform via the Prism of Integrations.

Prism offers DeFi and Blockchain startups white-labeling solutions, providing a multi-network launchpad service to any EVM-compatible network while also allowing startups to create custom tailored smart-contracts with tokenomics functionality centered around liquidity provisioning, yield farming, and compounding interest-based lock-ups.

Here is a full overview of the current Prism Ecosystem

Deflect Token

Contract Address: 0x3aa5f749d4a6bcf67dac1091ceb69d1f5d86fa53

Deflect ($DEF) is the token upon which the entire Prism ecosystem is built.

From a store-of-value to being a component in the creation of the Prism token, Deflect draws its value from multiple sources while also having unique properties that directly benefit its holders simply as it’s used in the network.

Deflect Tokenomics

Deflect redistributes 1.5% of every transaction made to existing Deflect holders instantly and automatically, with no action or gas spending required by holders. This means holders gain value by way of additional tokens with each transaction conducted using Deflect network-wide, simply by holding it in their wallet. The percentage of total fees you earn is proportional to the percentage of the total Deflect token supply that you hold.

e.g. You hold 1% of the total existing DEF supply and yesterday’s total network volume was $10M. You get $1500 (1% of 1.5%) deposited into your wallet address, completely gas-free and with no action taken on your part!

An innovative deflationary function has also been added where 0.75% of every transaction is burned, removing it from the total supply forever and increasing scarcity on DEF the more it’s used.

Finally, to ensure confidence in the community for future development of the project, a nominal 0.25% of transactions goes towards a development treasury fund for future strategies and additions to the ecosystem.

Initial Token Distribution

These were the starting distributions of the Deflect token upon launch in December 2020.

With Deflect, we sought to fix the one perceived negative within the RFI ecosystem, the “Black Hole” eating away at everyone else’s share of the redistribution yield.

Deflect improves and compounds on this concept with an even more aggressive deflationary approach. This is where the 0.75% burn of each transaction comes into play. As the supply dwindles at an increasing rate from ecosystem and community growth, prices increase as tokens become more and more scarce over time.

There’s a ton of utility constantly being built that always goes back to building the price floor of the Deflect token. Every action taken is meant to build value for the ecosystem and its token holders through increased price floor, redistribution of volume, and supply burning.

As time goes on, your holdings grow in size due to redistribution, rising price floor, and burning. It’s basically taking basic supply/demand principles and adding steroids to it.

Prism Token

Ethereum Network

Contract Address: 0xd46df541148932690b81092f600f35208afd4325

bPRISM Token

Binance Smart Chain

Contract Address: 0x4cf12dd46bab9afc94e049342fd75a9eaff5d096

pPRISM Token

Polygon Network

Contract Address: 0xd46df541148932690b81092f600f35208afd4325

Prism ($PRISM) is the core ecosystem utility token backed by the Uniswap DEF/ETH liquidity pool tokens (LP) used in its minting process.

All products on the Prism platform are accessed using Prism in some form, making it one of the most valuable assets you can acquire in the Prism ecosystem.

How to mint PRISM

Prism is minted by permanently locking DEF/ETH LP in the Deflect DEF/ETH LP vault, effectively burning it forever. This is a one-way conversion, meaning Prism that’s minted cannot be reverted back into DEF/ETH LP later on. DEF/ETH LP is obtained by providing liquidity to the DEF/ETH liquidity pool on Uniswap.

The conversion rate when minting PRISM is locked in at 0.000005 DEF/ETH LP:1 PRISM.

Prism Bridges

Prism Network is the first to enable cross-parachain trading via its native bridges, access to which is granted by the Prism token.

Prism’s Launchpad and partner pairs benefit from being a part of the ecosystem by having instant access to assets and services which may not be readily available on their native chain through the use of these bridges, reducing friction and giving their community and users the freedom to transact without having to worry about manually switching chains.

For example, with the Prism Bridges Prism and partners have easy access to a variety of DEXs in the Prism Network, regardless of what their native chain is. A side effect of this is that all DEXs in the Prism Network also benefit from increased volume as more users exchange and transact using the platform.

Here are examples of how a transaction might work using PRISM and its wrapped layer 2 versions, going from one token on its native chain to another token that exists only on the Polygon Network:

The beauty of all this is that users are able to migrate chains with the click of a single button.

This function as a network bridge brings unprecedented utility to the Prism token, rewarding PRISM liquidity providers and minters as more users and projects utilize and become a part of the Prism Network.

The result of this is a network effect that compounds as more DEXs, projects, and users interface with Prism. In the future, we can see a host of decentralised exchanges adopting the Prism Network as a convenient means to transact value between parachains.

Up until now, Prism’s cross-network integrations and utility is a market that has been untapped. As the first of its kind, Prism sets the standard for a cross-network utility token and will only continue to further innovate upon this initial concept.

You can learn how to use the Prism Bridges here

Medium of Exchange on the Prism Bridges

The Prism token’s flagship feature is its usage as the sole medium of exchange on the Prism Bridges, a series of connections that make it easy for users to transact value across different blockchains. These bridges also give our partner Launchpad projects added value by opening their ecosystem and liquidity up to users from other networks, and vice-versa.

The more the Prism Bridges are utilised, the more volume is generated, and the more income Prism minters will receive.

Cross-Chain Passive Income Mechanism & Liquidity Provisioning Incentive for Deflect Token

The Prism token comes equipped with a 0.25% fee that’s taken every time a transaction is made involving it. This fee is then split between all minters who have locked up and burned DEF/ETH LP tokens to mint PRISM, proportional to how much of the total Prism supply they have personally minted, regardless of whether they still hold the token or have sold. Minters get a share of all PRISM volume, forever, as long as PRISM is trading, regardless of whether it’s on the Ethereum mainnet or using its wrapped versions on partner chains.

0.25% share of all PRISM volume on Ethereum Network.
0.25% share of all bPRISM volume on BSC
0.25% share of all pPRISM volume on Polygon Network
0.25% share of all tPRISM volume on. TomoChain Network
0.25% share of all xPRISM volume on xDAI Network
0.25% share of all (x)PRISM volume on future additional networks

These fees are reflected as a balance that accrues over time in the bridge contract that minters can collect as often as they like with the click of a button.

This mechanism creates an ongoing incentive to provide liquidity to the DEF/ETH pool and become a Prism minter, as those who do will receive a percentage of all Prism transaction volume forever, regardless of whether or not they still hold the Prism token itself.

Arbitrage Opportunities

Because PRISM is a freely traded asset on the open market, there may be times when Prism itself on the open market is valued at more than it costs to actually make it.

This creates an arbitrage opportunity for traders, where a profit can be realised by providing DEF and ETH to the liquidity pool, obtaining the resulting DEF/ETH LP token, minting Prism, and then selling the Prism on the open market for the difference.

The result of this is an arbitrage that is encouraged, since each addition of liquidity to the DEF/ETH pool forever adds to the ETH balance and raises the price floor of the Deflect token. Prism is one of the rare cases where an increasing supply of the token is actually desired.

Example:

For those wondering why we created an arb between minting and buying/selling…

See when PRISM is more expensive to buy than mint. People will sell their prism into deflect and ETH and make LP and mint more prism than they sold (arb opportunity)
When prism is more expensive to mint than buy, people will keep buying until the cost of minting is cheaper than buying again.
It’s a natural arb that flows via deflect, pushing volume on deflect = more re-distribution & burn on deflect.

There is also Arbitrage opportunities between wrapped PRISM assets on different chains. Example if $PRISM is $50 and bPRISM is $70, you can bridge $PRISM -> bPRISM and profit the difference once sold.

Increased Volume Generation for Deflect Token Holders

The Deflect token’s flagship feature is its fee redistribution and burn mechanism, which splits a portion of all Deflect transactions among Deflect holders and burns a portion of all Deflect transactions forever.

Prism further amplifies this effect and benefits Deflect holders by virtue of requiring Deflect to be bought and then supplied into the liquidity pool in order to mint it, a two-step process that is incentivised to be done more over time as Prism market value continues to maintain a value that’s more than its underlying DEF/ETH LP value.

Pairing Prism with Deflect (DEF/PRISM), any entries to and exits from the Prism ecosystem will first be transacted in Deflect, further generating Deflect volume and subsequently, revenue for Deflect token holders.

Prism Cross-Chain Launchpad

Prism Network’s flagship service is the Prism Launchpad, a platform that provides projects with cost-efficient fundraising opportunities and investors with a secure investment platform for new, innovative projects.

DeFi with its decentralisation and lowered barrier for entry didn’t come without some initial risks.

Projects listing on DEXs in the beginning were prone to “rug pulls”, where any community-invested funds and liquidity for a certain token could be withdrawn, leaving investors unable to do anything with their now useless tokens and nowhere to sell them.

Investing in projects on the Prism Launchpad ensures a secure, “rug-proof” environment for investors, safeguarding against scam projects and dishonest developers.

How It Works

All Prism Launchpad partners go through a vetting process, ensuring they have a business plan and infrastructure for their project before they are even considered for a launch.

Then, using pre-existing, audited templates or custom-built, audited smart contracts, a Liquidity Generation Event (LGE) is launched where investors can deposit funds for a stake of the starting liquidity pool tokens.

All details of the project and LGE (liquidity lock time, etc) are made public before launch to ensure investors make an informed decision when investing.

When the LGE finishes, rewards and LP tokens are dispersed amongst contributors and pre-staking for associated yield-farming pools is opened shortly afterward.

The entire process of a token launch, from the vetting phase to when yield-farming pool participants withdraw their rewards, occurs on the fully-audited and battle-tested Prism Network platform. The proven smart contracts mean there is no chance of a project taking control of the liquidity supply and leaving investors to hold the bag.

All of this means investors can rest assured that their investment funds are secure and that the integrity of the token launch can be counted on.

For Projects

Projects lacking in funding or development resources have Prism’s solidity and smart contract expertise at their disposal, whether they are trying to bring a new concept to market or are looking for a low-cost way to supplement an existing ecosystem.

There are many benefits to launching with Prism:

Cost-efficient

With pre-audited smart contract templates, liquidity generation events and token deployment costs are drastically reduced, allowing Prism to launch partner project tokens for virtually no out-of-pocket costs.

In return for providing a launchpad platform, a percentage of the project’s token supply is allocated to the Prism treasury and yield-farming pools, giving projects an existing ecosystem and community to launch to.

Any custom features and smart contracts outside of launch and token deployment can be requested for an additional cost.

Access to Prism community funding

Up and coming projects don’t have to worry so much about initial funding and exposure with Prism’s existing community and ecosystem. As Prism grows, each additional project further adds to the community base subsequent projects are exposed to, giving new projects a vibrant starting community to build upon.

Launch integrity

Prism’s launch smart contracts are pre-audited and backed by successful launches. Launching with Prism helps instill confidence in investors and gives peace of mind to joining community members.

Cheap to no-cost smart contract auditing services

Prism’s partnership with CertiK and Omniscia makes it possible for projects to enjoy discounted auditing services when requesting custom smart contract work to be done in the Prism ecosystem.

Instant access to Prism Bridges

Projects launched using the Prism Launchpad have instant access to the Prism Bridges, a series of cross-chain bridges that allow users to seamlessly transact value and interact with ecosystems outside of their immediate blockchain network.

Freedom of choice in parachains

Prism Network is the first launchpad service to offer partner projects a choice in which parachain solution they would like to launch on. In the future, Prism plans to extend its ecosystem beyond Ethereum parachains, to different blockchains altogether.

To start, partner projects will be able to choose between Ethereum, Binance Smart Chain, Polygon Network, TomoChain, and xDAI as their launch network.

Farming-as-a-service

For projects and communities that don’t need a launchpad release, Prism also offers yield farming real estate.

If you’re just looking for a place to host your yield farming pool, Prism will provide the setup in return for simply being able to apply our boosts onto the pool itself.

Access to up to 10% of All Launchpad Project Launches

As the replacement to DEF/ETH LP for utility in the Prism ecosystem, Prism takes on the benefit of enabling holders to stake its PRISM/ETH LP counterpart to farm and acquire a share up to 10% of the supply of all Prism Launchpad project tokens.

The more high-quality projects on the Launchpad, the more valuable PRISM is and the more PRISM/ETH LP stakers will benefit.

Please note this is dependant on the network a project launches

Ethereum launches = PRISM/ETH
BSC launches = bPRISM/BNB
Polygon Launches = pPRISM/MATIC
TomoChain launches = tPRISM/TOMO

Etc etc.

Prism Network Farming as a service

Prism Network will provide its audited and secure infrastructure and smart contracts such as staking pools free of charge for any project on any evm network. Pools can be custom built for project specifications, and will be hosted on prism network with prism boosting contracts.

This saves projects 10–40k to build and audit their own pools, giving them the development funding and time to focus on their platform enhancements and upgrades.

Boosts for Yield Farming Pools on Prism

Minters of PRISM receive lucrative multiplier bonuses in staking pools in the Prism ecosystem simply by holding the token in their staking wallet, increasing their emissions rate of rewards farmed.

Global Boost: When you mint PRISM, you become eligible for our Global Boost. Which boosts every single pool you stake in.

15 historically minted prism = 5% global boost
30 historically minted prism = 10% global boost
75 historically minted prism = 25% global boost
150 historically minted prism = 50% global boost

Global boosts boost every single pool you stake in, regardless of network.

As the first of many burn mechanisms that will be added for the token, Prism will also be enabled as a burned boost on yield farming pools on the Prism platform.

Spendable Boost: When PRISM is spent as a boost on any individual pool, it will be burned from the supply forever, giving PRISM a hyper-deflationary aspect as it’s minted on 1 chain but burned across 5 chains.

Users will have the option to spend Prism in order to boost their yield share in any pools they participate in in the Prism ecosystem, thereby burning the Prism and removing it from circulation forever. This adds a deflationary measure to the Prism token, reducing supply, increasing scarcity and price, and further incentivising liquidity provisioning and the minting of Prism all over again.

Future Possibilities and Potential for Development using Prism

With the Prism token comes virtually limitless possibilities for strategies and developments, further building on these core principles, such as using Prism as collateral in lending and borrowing products in the Prism ecosystem.

As Prism continues on exploring new realms in the world of DeFi, there will likely come a time when Prism finds its way onto other smart contract platforms and ecosystems. When that day does come, PRISM will serve as the primary currency and utility token.