Since early 2023, the size of the stablecoin economy has decreased due to numerous redemptions. However, new stablecoin asset projects have emerged, such as Aave’s GHO, First Digital’s FDUSD, and Paypal’s PYUSD. On September 1, a stablecoin protocol called Prisma Finance was launched, allowing users to deposit liquid derivative tokens for a token called MKUSD. Since its inception, the protocol has secured $55 million in locked value.
Prisma Finance Stablecoin MKUSD Joins the $123 Billion Fiat-Linked Crypto Economy
Another stablecoin, MKUSD, has entered the stablecoin economy, a large group of fiat-pegged coins now valued at $123 billion as of September 23. The stablecoin comes from a decentralized finance (defi) protocol called Prisma Finance, which was officially launched on September 1. , 2023. Prisma’s stablecoin MKUSD is described as a “non-custodial and decentralized Ethereum liquid-staking token (LST)-backed stablecoin.”
Essentially, Prisma users deposit supported liquid staking tokens into a vault to borrow MKUSD. If the collateral ratio falls below 120%, the vault can be liquidated. A stability pool takes over the liquidated debts and distributes collateral to providers. Supported collateral types are WSTETH, CBETH, RETH and SFRXETH. The minted MKUSD can be used on other defi platforms or later exchanged for the liquid-staking tokens (LSTs).
LSTs have become extremely popular over the past two years and there are 11.96 million ether locked up in LST platforms. At launch, the Prisma Project set the borrowing limit in phases, and by September 15, Prisma had secured $30 million. Currently, data from defillama.com indicates that Prisma’s total value (TVL) is $55.16 million.
Etherscan shows that the circulating supply of MKUSD is 29.99 million tokens. The token has only 129 holders and the ‘Stability Pool’ address controls 71.39% of the total supply. A stability pool is essentially a mechanism used by defi projects that ensures that the supply of a stablecoin is always supported. The second largest MKUSD wallet is held by Curve Finance and holds 14.30% of the MKUSD in circulation.
Compared to the major stablecoins such as USDT and USDC, MKUSD is significantly smaller. It also lags behind newcomers FDUSD and PYUSD, but surpasses GHO’s offer of 22,706,149. There are approximately 368,787,867 FDUSD and 44,376,440 PYUSD. All four stablecoins – MKUSD, FDUSD, GHO and PYUSD – are highly concentrated, with the top 100 holders in each project controlling the majority of the supply.
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