How can Prisma, who calls themselves “LST Endgame,” create a growth flywheel?

How can Prisma create a growth flywheel?

Prisma claims to be the “LST endgame”. Encryption researcher Tindorr analyzed Prisma’s features, competitors, and differentiation, and believes that Prisma encourages smaller LSTs to participate, increases liquidity scale, promotes healthy competition, and may be the next decentralized stablecoin with actual adoption.

Prisma allows users to mint $acUSD, a stablecoin fully collateralized by Liquidity Staking Tokens (LST). Its main features include: multi-collateral stablecoin (stETH, cbETH, rETH, frxETH, bETH); voting and bribery system; LST wars.

Most competitors have their own stablecoins, and differentiation is the size of the flywheel. In this game, the number of stakeholders should be large enough ecosystem. On Prisma, stakeholders are LST providers, LST holders, and vePRISMA holders.

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LST providers: Not limited to stETH, smaller LST can be used as collateral to increase liquidity scale; LST holders: As more LST becomes collateral, these holders can increase capital efficiency through $acUSD; vePRISMA holders are the governance system and stakeholders of this game. They can control parameters such as the stability pool of the protocol, protocol fees, and direct emissions of any LP token.

Reference: https://twitter.com/0xTindorr/status/1668986178584838148

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