Prisma Finance Introduces LST-Backed Stablecoin 🪙

Ethereum News Briefing | Wednesday, May 31, 2023

Quick Take

  • Prisma Finance introduces an LST-backed stablecoin.
  • Ledger Live adds support for ENS domains.
  • Aave increases supply caps for wstETH and rETH.
  • Hop Protocol adds support for rETH bridging.

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Prisma Finance Introduces LST-Backed Stablecoin

Prisma Finance introduced acUSD, a new stablecoin that will be backed by Ethereum Liquid Staking Tokens (LSTs). Once live, users will be able to use wstETH, cbETH, rETH,  sfrxETH, and WBETH as collateral for minting acUSD. Users can then choose to deposit acUSD into Curve for additional incentives, including PRISMA rewards.

The Prisma DAO, controlled by PRISMA token holders, will be able to change protocol parameters, including the stability pool, protocol fees, and emissions. vePRISMA holders will be able to vote on LP token incentives. Prisma is based on the Liquity Protocol codebase. The project plans to release additional details in the coming weeks.

Ledger Live Adds Support For ENS

Ledger introduced the Ledger Trusted Name Service, a solution that allows ENS domain mappings to be transmitted to Ledger hardware devices. Mappings between ENS domains and hexadecimal addresses can now be shown on a Ledger wallet display, which is controlled by the Secure Element.

The Ledger Live application now displays an address’s ENS domain if one exists. Users must still confirm that addresses typed in Ledger Live match what’s shown on a Ledger wallet display. Ledger also limited mappings to only show domains in lowercase alphanumeric characters in an effort to reduce errors related to typos.

Decent NFT Checkout Across Chains

Decent unveiled a one-click NFT checkout tool called The Box. The tool allows users to buy NFTs across chains without the need to interact with an NFT's native chain. It allows users to use their L2 tokens to purchase an NFT on Ethereum Mainnet and vice versa. The Box supports NFTs on Ethereum, Polygon, Optimism, and Arbitrum.

It can also facilitate purchases using any ERC-20 token and can be used for either primary or secondary sales. The Box executes token swaps, bridging, and purchases NFTs on behalf of users. The tool is currently available as a private beta release with an open-source SDK release planned in the coming weeks.

Aave Increases wstETH and rETH Supply Caps

Aave increased supply caps for wstETH and rETH liquid staking tokens on Aave V3. The supply cap for rETH was increased two-fold to 40k rETH while the cap for wstETH was increased from 200k to 300k wstETH. Aave V3 uses supply caps as a risk management parameter to reduce protocol exposure to higher-risk assets. wstETH and rETH are also supported in High-Efficiency Mode, or E-Mode, which allows users to obtain a higher LTV ratio when supplying and borrowing correlated assets.

Hop Protocol Adds Support For rETH

Cross-rollup bridge Hop Protocol added support for rETH bridging across Ethereum, Optimism, and Arbitrum. RPL token incentives have also been added to rETH bridge pools on Optimism and Arbitrum. Liquidity providers can currently earn close to 5% APY in RPL rewards. Rocket Pool is the third largest liquid staking provider with over $1 billion in staked ether deposits.