Prisma Finance Stablecoin MKUSD Joins the Growing Fiat-Pegged Crypto Economy
A new stablecoin called MKUSD has entered the stablecoin economy, which is now valued at $123 billion. MKUSD is the stablecoin of Prisma Finance, a decentralized finance (defi) protocol that launched on September 1, 2023. MKUSD is described as a non-custodial and decentralized Ethereum liquid-staking-token (LST)-backed stablecoin.
How Does It Work?
Users of Prisma Finance can deposit supported liquid staking tokens into a vault to borrow MKUSD. If the collateral ratio drops below 120%, the vault can be liquidated. A stability pool takes on the liquidated debt and distributes collateral to providers. The supported collateral types are WSTETH, CBETH, RETH, and SFRXETH. The minted MKUSD can be used on other defi platforms or redeemed for the liquid-staking tokens (LSTs).
Prisma Finance’s Success
The Prisma project set its borrowing limit in phases and has already secured $30 million by September 15. Currently, Prisma’s total value locked (TVL) stands at $55.16 million according to defillama.com data.
About MKUSD
MKUSD has a circulating supply of 29.99 million tokens and only 129 holders. The “Stability Pool” address holds 71.39% of the total supply, while Curve Finance holds 14.30% of the circulating MKUSD.
Comparison with Other Stablecoins
MKUSD is smaller compared to major stablecoins like USDT and USDC but surpasses GHO’s supply. However, it lags behind newcomers FDUSD and PYUSD in terms of supply. All four stablecoins are heavily concentrated, with the top 100 holders controlling the majority of the supply.
Hot Take: MKUSD Expands the Stablecoin Market
The addition of MKUSD to the stablecoin economy further expands the options available to crypto users. With its unique liquid-staking-token backing and decentralized nature, MKUSD offers an alternative stablecoin choice for those involved in defi platforms. While it may be smaller compared to some of its competitors, MKUSD has already gained traction and secured significant investments. As the crypto market continues to evolve, it will be interesting to see how MKUSD and other stablecoins contribute to the growth and stability of the overall ecosystem.
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