In follow-up to the introduction of Nexus Boosted Prism Farming, which we named it nexPrism, following is details of the nexPrism’s design and architecture. nexPrism involves new native token, nexPRISM.
Highlighting the core parts of nexPrism per user group:
For xPRISM holders
- nexPRISM Minting
Users convert xPRISM into nexPRISM via Nexus xPRISM staking vault. Staking process is irreversible. Minted nexPRISM is automatically staked to nexPRISM Staking. Users may unstake nexPRISM to sell (for exit). Only staked nexPRISM will be rewarded. All depostied xPrisms will be pledged to Prism’s AMPS vault to acquire AMPS.
- nexPRISM Staking
nexPRISM holders must stake their nexPRISM in order to receive a proportion of additional PRISM farmed by yLuna yield boosting. As Prism’s yLuna farm provided farmed PRISM token with 30 days lock, the additional rewards will be distributed once the tokens are unlocked in a form of xPRISM.
- nexPRISM-xPRISM LP
nexPRISM-xPRISM LP will be created on Astroport with suitable amplifer as a stableswap. Such liquidity pool will provide liquidity to nexPRISM holders, allowing them to enjoy both boosted yield and liquidty. Keeping the nexPRISM to xPRISM peg would be vital to nexPrism expansion, and the attractiveness of the nexPRISM in terms of yield, would be the main natural force to maintain the peg. (As how cvxCRV to CRV peg is well kept). For liquidity provider, nexPRISM-xPRISM will be a pair with minimum impermanent loss risk made with both capital efficient form of PRISM token; perfect if you are bullish on PRISM tokens.
For yLuna holders
- yLuna Nexus Vault
yLuna holders may choose to deposit yLuna at Nexus yLuna vault for higher yield than yLuna staking or yLuna farming without pledged xPRISM. As Prism’s yLuna farm provided farmed PRISM token with 30 days lock, the rewards will be distributed once the tokens are unlocked in a form of PRISM.
For Psi Stakers
- nexPrism Buyback
nexPrism will be in direct benefit to Psi stakers as they will receive a proportion of boosted yield created in the system. (Initial parameter being 5%, which can be adjusted via Nexus Governance proposals). Rewards from the yield will be provided in nexPRISM, providing additional mechanism to better keep peg between nexPRISM and xPRISM. We believe such reward distribution is a logical model as better the nexPRISM’s peg is kept, more nexPRISM may be minted, meaning more rewards for Psi stakers. We believe such rational win-win rewards model between the protocol that Nexus’s vault is built upon and Psi stakers, would benefit the Nexus Protocol in long term.
nexPrism has dynamic yield distribution adjustment system, because the right balance between the AMPS and yLuna would maximize the overall yield. As number of total AMPS and farmed yLuna may constantly change, in order to attract the ideal composition of AMPS and yLuna, the yield distribution will be regularly adjusted per 8 hours, depending on which asset is in deficit in comparison to the ideal composition. Such mechanism will ensure that Nexus provides ideal vaults for xPrism and yLuna holders to maximize their yield.