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Exploring Pryzm's Tech: The Future of Yield

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Key Takeaways

  • Appchain Architecture: Cosmos-based appchain for customization, scalability, and performance.
  • Specialized AMMs: YAMM and WAMM facilitate efficient trading of yield and principal tokens.
  • Advanced Trading: FlowTrade and PulseTrade enable sophisticated strategies and boost liquidity.
  • Cross-Chain Staking: ICStaking Module offers seamless staking across multiple chains with instant unstaking.
  • Decentralized Governance: pGov and Treasury modules empower community participation and decision-making.
  • Robust Security: Oracle Module ensures data accuracy, risk mitigation features, and diverse revenue streams for long-term growth.
  • Sustainable Model: Diverse revenue streams benefit PRYZM holders and align incentives.

Introduction

Yield optimization has become more than just a buzzword, it's an essential strategy for those seeking to maximize returns on their digital assets. From liquidity providers harnessing the power of compounded interest to institutional investors deploying sophisticated strategies, the quest for optimal yield is shaping the DeFi landscape.

However, the road to yield optimization is not fully smooth. Generally, conventional DeFi solutions have rendered the environment largely uncertain, with regard to changing yields, lockups of assets, and the ever-looming threat of vulnerabilities of smart contracts. Inherent volatility and lack of predictability in the space may seriously deter those investors prepared to trade in the complex environment of DeFi.

Refracted Labs' groundbreaking project, Pryzm, promises to change the game in the yield space. The Pryzm approach focuses on user control, flexibility, and predictability to get to optimal returns. By tokenizing future yields for trading on a purpose-built AMM, Pryzm solves the pain points in traditional DeFi solutions that make the yield optimization experience more stable and user-friendly.

In this technical deep dive, we will embark on a journey through the Pryzm's architecture, exploring its innovative features underlying technology. We will delve into the mechanics of yield tokenization, the role of the Yield AMM, and the various modules that power Pryzm's sophisticated platform.

Architectural Foundation: An Appchain for Yield

Pryzm's journey started with a simple idea: creation set of smart contracts to improve yield management in DeFi. But the team quickly realized that to truly revolutionize the space, they needed more control and flexibility than existing blockchains could offer. That's why they chose to build Pryzm as its own appchain on the Cosmos SDK.

Think of an appchain as a custom-built blockchain, like a tailor-made suit perfectly fitted to its purpose. In Pryzm's case, that purpose is to optimize yield trading and management, drawing inspiration from the sophisticated strategies of traditional finance. The Cosmos SDK provides the foundational tools and Tendermint consensus ensures security and efficiency, but Pryzm's team has the freedom to design everything else to match their vision.

Why an Appchain?

  • Customization: It's like having your own private playground where you set the rules. Pryzm can tailor its features and parameters precisely to its yield-focused goals.
  • Sovereignty: No more relying on someone else's blockchain. Pryzm is in control of its own destiny, upgrades, and governance.
  • Performance: Appchains can be optimized for specific tasks, ensuring Pryzm runs smoothly even with complex yield trading strategies.
  • Interoperability: Thanks to the Inter-Blockchain Communication (IBC) protocol, Pryzm can easily connect and trade assets with other Cosmos blockchains. Future bridges are planned to further expand its reach.

The Core Idea: Tokenized Yield

Pryzm's magic lies in its ability to tokenize future yield and provides the concept of "yield on yield," enabling users to restake their assets in order to earn additional yield, effectively compounding their returns.

Imagine you have a yield-generating asset, like a staking position or a liquidity pool share. Pryzm lets you split this asset into two parts:

  • Principal Token (pToken): Represents your original investment, like the deposit in a savings account.
  • Yield Token (yToken): Represents the future yield you expect to earn, similar to the interest payments on that deposit.

Now, you can trade these tokens independently! Need cash now? Sell some yTokens to get a portion of your future yield upfront. Want to bet on rising yields? Buy more yTokens. This flexibility is unheard of in traditional finance and even most DeFi platforms.

In our previous article, we delved deeply into Przym's Token Alchemy. If you haven't had a chance to read it yet, we highly recommend it!

In essence, Pryzm's appchain is the foundation for a whole new world of yield management. It's a platform built from the ground up to empower users, offering unprecedented control, flexibility, and interoperability. Pryzm is not just optimizing yield, it's redefining it.

Protocol Modules: A Deep Dive

Pryzm's technical innovation is evident through its complex network of specialized modules, each meticulously designed to perform a specific function. These modules, working in harmony, transform Pryzm into a dynamic and versatile platform for managing and trading yield-bearing assets. Let's delve deeper into the core modules that power Pryzm's ecosystem:

Asset Module: The Backbone of Yield Tokenization

The Asset Module is the backbone of Pryzm's yield tokenization infrastructure, governing the lifecycle and properties of refractable assets - those that can be split into principal and yield components. This module acts as a central registry, meticulously tracking and managing these assets within the Pryzm ecosystem.

Each refractable asset is assigned a unique identifier and a set of attributes, providing a clear distinction and facilitating seamless operations. These attributes encompass the token denomination, specifying the type of token involved, and the host chain ID for staked assets, identifying the original blockchain where the asset is staked.

For external assets not originating from staking, the host chain ID remains blank. The module also tracks the "disabled status," allowing for governance-controlled deactivation of specific assets, preventing new refractions while permitting existing refracted tokens to be merged or redeemed.

Maturity parameters, a crucial aspect of the Asset Module, define the frequency with which new maturities are introduced and their duration before expiration. These parameters are governed by two key factors: the number of maturities per year (annual, semi-annual, quarterly, or monthly) and the years in advance for which maturities are available (ranging from 1 to 10). This fine-grained control enables users to strategically plan their investments, considering both their risk appetite and desired holding periods.

Furthermore, the Asset Module outlines fee ratios associated with asset operations like refraction, merging, and redemption. These fees are instrumental in maintaining the platform's economic sustainability, ensuring it can cover operational costs and incentivize the maintenance and growth of the ecosystem.

In a nutshell, the Asset Module is the fundamental building block of Pryzm's yield tokenization functionality. It takes care of all refractable assets with due diligence and therefore lets users get the very best out of yield separation for strategic investment decisions and unlocking new opportunities within the DeFi space.

Refractor Module: The Alchemist's Touch

The Refractor Module embodies the dynamic power of Pryzm, functioning as the transformative engine that unlocks the hidden potential within yield-bearing assets. This module facilitates the 'refraction' of supported assets (Collateral Tokens, or cTokens) into two distinct components: pTokens (Principal Tokens) and yTokens (Yield Tokens).

Through this process of refraction, Pryzm allows a user to maximize their exposure to both yield and price fluctuations. By holding pTokens, investors maintain a stake in the underlying asset's price movements, while yTokens provide them with a claim over future yield to be generated by the asset. This flexibility creates an avenue to tailor investment strategies to suit specific risk interests and market views.

The Refractor Module offers more than simple portfolio management, rather, it provides extra liquidity and more trading possibilities within the Pryzm network. Both the pTokens and the yTokens can be openly traded against each other on the platform, for investors to capitalize on movements in different markets and to diversify without limitation into just one asset class. It's not just about increasing user power over investments but unleashing liquidity and trading opportunities, nurturing a more dynamic and robust DeFi ecosystem.

ICStaking Module: Bridging Chains and Optimizing Staking

The ICStaking Module is designed to maximize the utility and accessibility of native tokens across various blockchains. It empowers users to stake their assets on supported chains and receive liquid staking derivatives in return. This unlocks a world of possibilities, allowing users to trade, leverage, or further utilize their staked assets within the Pryzm ecosystem while still earning staking rewards.

By integrating with the Cosmos interchain, it streamlines staking operations across multiple blockchain networks. This integration ensures efficient management and control over staked assets, regardless of their origin chain.

The module's automation capabilities further improve the staking experience. It batches user stakes and delegates them at predefined intervals, optimizing transaction efficiency and minimizing fees. Additionally, it employs an auto-compounding mechanism, automatically reinvesting staking rewards to maximize users' earnings over time.

Perhaps the most groundbreaking feature of the ICStaking Module is its innovative instant unstaking capability. In the Cosmos ecosystem, unstaking typically involves a lengthy unbonding period, limiting users' liquidity and flexibility. Pryzm disrupts this paradigm by enabling users to unstake their assets instantly, bypassing the standard unbonding period. This feature provides unparalleled access to liquidity, allowing users to react swiftly to market opportunities or personal needs.

In addition to its interchain staking capabilities, ICStaking Module also supports staking on chains without Interchain Accounts (ICA) through the use of multi-sig trusted accounts. This expands the platform's reach and enables users to stake their assets on a wider range of blockchains, further increasing accessibility and participation.

The ICStaking Module transcends traditional staking limitations by offering seamless cross-chain staking, instant unbonding, and optimized reward mechanisms.

yStaking Module: Compounding Yield

The core functionality of the yStaking Module includes bonding, instant unbonding, and claiming rewards. Each of these enforces a sturdy yet flexible structure for yield-generating asset management.

Bonding represents the initial step in the yStaking process. It involves users staking their yTokens into a specific 'MaturityYAssetPool', signifying their commitment to locking those assets for a defined period to earn rewards. Upon bonding, the module meticulously updates the 'bondedAmount' for both the specific pool and the overall 'YAssetPool', reflecting the increased participation. Additionally, the user's 'pendingReward' is recalculated based on the pool's current 'globalIndex' and the user's last recorded 'userIndex,' ensuring accurate reward distribution based on the amount and duration of the stake.

Unbonding offers users the flexibility to withdraw a portion or all of their staked yTokens from a pool. This feature proves valuable when users require liquidity or wish to reallocate their investments. Upon initiating an unbonding request, the 'bondedAmount' is adjusted accordingly, and any accrued rewards are calculated and transferred to the user, effectively resetting their 'pendingReward' to zero.

The Claim Rewards function empowers users to collect their accumulated rewards based on their staked assets. The module precisely calculates these rewards by considering the user's bonded amount and the duration of their stake, utilizing the globalIndex for accurate computations.

For pools with expired maturities, the yStaking Module offers the 'ExitPool' function. This allows users to smoothly withdraw their assets and claim any remaining rewards, streamlining the process for handling matured investments.

The yStaking Module is a testament to the fact that Pryzm is committed to ensuring users get to wield diverse and rewarding yield optimization strategies. The yStaking Module unlocks an opportunity whereby users can stake their yTokens and earn additional yield, unlocking the power of compounding and encouraging long-term participation within the ecosystem.

Mint Module: Balancing Liquidity and Growth

The Mint Module ensures a healthy balance between market liquidity and staked supply by regulating the creation of new tokens. Its flexible inflation rate, governed by market demand and a target bonded-stake ratio, promotes stability and sustainable growth. This mechanism further incentivizes participation by rewarding various contributors, including validators, liquidity providers, developers, and oracles.

Pryzm's approach to minting is both rhythmic and responsive. New tokens are minted at regular intervals, typically once per epoch (with a default duration of one week). In all, the flexibility of the module comes through in dynamic changes in inflation rate, with a balanced ratio between staked and circulating supply. An adaptive mechanism for keeping enough liquidity in the market while encouraging active participation in staking activities.

To determine the optimal inflation rate, the Mint Module uses a "moving change rate" mechanism. This mechanism responds to market demand, targeting a specific bonded-stake ratio. By setting this target percentage below 100%, the network encourages a portion of tokens to remain unstaked, thereby fostering liquidity. The mechanism's approach ensures that the inflation rate adjusts dynamically to either encourage or discourage bonding, maintaining a healthy balance between staked and unstaked tokens.

Oracle Module: Ensuring Data Integrity

The Pryzm Oracle Module, emerging from a Cosmos SDK-based project, provides a robust framework for interacting with external data sources that ensures the blockchain remains in sync with the real world. It employs a data-agnostic voting process that not only encourages validator participation but also guarantees the authenticity and relevance of the data fed into the system.

A key strength of the Oracle Module lies in its adaptability. It is explicitly designed for seamless integration into any Cosmos-based chain, extending its utility far beyond the Pryzm ecosystem. This is achieved through a well-defined callback interface, allowing other modules within the chain to register their interest and participate in the voting process. Once validated, the data is readily available for these modules to utilize in their operations, ensuring that critical decisions and actions are based on accurate and up-to-date information.

The Oracle Module's core functionality revolves around collecting, verifying, and implementing data from external sources into the blockchain. This process begins with validators or their designated feeders submitting data points pertaining to external conditions that may impact chain operations. These data points can range from asset prices and external system states to any other relevant external information.

The information, in turn, undergoes a strict voting process right after submission, where the validators ensure that the information submitted is indeed correct. This consensus-based mechanism ensures that only data verified by a majority of the network's validating power is accepted and integrated into the blockchain, thereby maintaining the highest standards of data integrity.

The Oracle Module is designed to be able to hold a wide variety of data types and sources. Each oracle vote encompasses the validator's identity, specific module votes indicating data requirements, and namespace votes providing a granular breakdown of data categorized by namespace. This systematic approach facilitates the efficient organization and accessibility of validated information.

To further enhance security and prevent data manipulation, the algorithm employs a two-phase voting process. In the pre-vote phase, validators commit to a hashed version of their data, ensuring their commitment before revealing the actual data. The next vote phase involves validators revealing their previously committed data, which is then verified against the pre-vote hash to ensure data immutability. This process effectively mitigates risks associated with validators altering their submissions based on other validators' votes, preserving the fairness and integrity of the data integration mechanism.

With this rigid voting process, and well-articulated data integration mechanism, authenticity, and reliability are ensured. Such a construct further enhances security, efficiency, and capability for the platform. This makes it extremely potent, considering the fact that it can be made compatible with any Cosmos-based chain, hence finding applicability on a wide range of blockchain applications beyond the Pryzm network.

Incentives Module: Fueling User Engagement

The Pryzm Incentives Module is a strong driver in catalyzing user engagement and, correspondingly, the growth of the platform. It provides a versatile framework for crafting and managing diverse incentive programs, allowing the protocol to reward users for actively participating in the ecosystem. Whether it's providing liquidity, staking assets, or completing specific tasks, this targeted incentivization aligns user interests with the platform's success, cultivating a vibrant and dedicated community.

The Incentives Module is based on the key concept of an "incentive pool." These pools, established by governance for specific tokens, serve as reward hubs where token holders can bond their assets to earn incentives. Its flexibility is observed via multi-reward sources, including native minted tokens and external incentives. Moreover, each pool can distribute rewards in several denomination types, which provides an avenue for supporting a dual incentivization strategy.

More powerful is the fact that the module is complemented by its integration with the Mint module. Incentivization can be done by distributing the main native coin of the chain, which the Mint module produces, to the pools based on their weight and bonded amount. This ensures a continuous flow of rewards, motivating user participation and reinforcing the platform's growth trajectory.

The Incentives Module is more of a strategic tool, meant to spur user adoption by driving engagement. In this way, the Pryzm team is able to define the shape and form incentivization will take depending on what their priorities are-be it improving liquidity in AMM pools, driving staking, or developing dApps on the chain. By aligning the interests of token holders with the protocol's success, the Incentives Module will be key to setting up Pryzm as a thriving, sustainable DeFi ecosystem.

pGov Module: Democratizing Governance Across Chains

In the realm of cross-chain liquid staking, the ability to participate in governance decisions on the original asset's blockchain is often a luxury offered in exchange for enhanced liquidity and yield. Pryzm, however, redefines this paradigm through its innovative pGov module, empowering users to retain their voice in the governance process.

When assets are staked on Pryzm and transformed into cTokens, the pGov module ensures that the associated voting power doesn't vanish. Instead, it is intelligently channeled through both cTokens and the pTokens derived from them. These tokens effectively become your digital ballot, enabling you to vote on mirrored proposals from the original chain directly within Pryzm's intuitive interface. Pryzm then aggregates these votes and submits them to the native chain, ensuring your influence resonates where it matters most.

This streamlined approach democratizes governance participation, allowing users to engage in decision-making processes without sacrificing liquidity. By staking pTokens in the pGov module, cTokens holders can amplify their voting power and actively contribute to the governance of the original blockchain. This staked amount is securely escrowed within the pGov module account, contributing to the holder's overall voting weight. While these staked pTokens can be redeemed at any time, the amount at the time of vote tallying is the determining factor in your final voting power.

The pGov module's seamless integration with the ICStaking module further enhances its functionality. By mirroring proposals from supported asset chains onto Pryzm, it provides a convenient platform for users to cast their votes within a shorter timeframe. For loop-back chains (where the asset is Pryzm's native token), proposals are replicated using the 'gov' module's hooks, enabling swift action. For ICA and Multi-Sig connected chains, a specialized interchain query process ensures secure submission and verification of proposals.

Pryzm's commitment to transparency and inclusivity is evident in its open voting policy. All users are eligible to vote, and their voting power is dynamically calculated at the time of tallying. The platform employs robust mechanisms, such as ICA and the delegation account, to securely cast votes on the native chain and ensure the execution of the voting process.

Treasury Module: The Custodian of Pryzm's Prosperity

The Pryzm Treasury Module holds a dual role, it serves as both the central repository for protocol fees, and also acts as a framework that manages those very fees strategically.

Fee Collection and Management

The module operates as a centralized account, aggregating fees generated from various operations within the Pryzm network. Each module, whether it's the AMM, the Refractor Module, or others, specifies the amount and type of fee it collects. The Treasury Keeper, a dedicated component of the module, offers efficient methods for fee collection, either as a fixed ratio of the transaction amount or as a direct deduction from the sender's account. Such a meticulous fee collection process ensures a continuous revenue stream for the treasury and adds to the financial well-being of the platform.

Community-Driven Financial Strategies

The Pryzm Treasury accumulates a diverse portfolio of tokens, including yield-bearing assets and LP tokens. This diversified asset base empowers PRYZM token holders to directly influence the platform's financial strategies through on-chain governance. By proposing and voting on strategic actions, the community collectively decides how to utilize the treasury's funds.

These strategic options encompass a range of possibilities:

  • Holding Funds: In times of market volatility or when reserving capital for future initiatives, the treasury can simply hold onto its assets to preserve their value.
  • Token Buyback and Burn: This strategy involves utilizing treasury funds to repurchase PRYZM tokens from the market and permanently remove them from circulation. This action reduces the overall token supply, potentially increasing scarcity and driving up the token's value.
  • Distribution to Stakers: To reward those actively contributing to the network's security and operation, the treasury can distribute PRYZM tokens to stakers. This fosters loyalty and encourages long-term participation within the ecosystem.
  • Funding Community Pool: The treasury can also allocate funds to a community pool, which serves as a vital resource for supporting public goods and ecosystem development. This empowers the community to drive innovation and growth on the Pryzm platform.

When the decision is made to convert non-PRYZM tokens into PRYZM for purposes like buybacks, these sales are executed through FlowTrade. Further, this strategic approach makes sense in order to minimize market impact and efficiently allow for token conversions at better prices.

FlowTrade Module: Enhancing Liquidity and Accessibility

Pryzm's FlowTrade module steps in to address the challenges of trading in scenarios with low or even non-existent liquidity, such as across disparate blockchains, during new token launches, or when traditional AMM routes prove inefficient or costly. FlowTrade operates akin to a sophisticated auction mechanism, enabling the gradual exchange of tokens over a defined period.

Two immediate key participants at the heart of FlowTrade are:

  • Creators: Individuals or entities seeking to sell their tokens in a controlled manner.
  • Subscribers: Those interested in purchasing tokens from creators.

The exchange process, aptly named "flow," involves creators committing their tokens to the system, which are then gradually released to subscribers in exchange for their designated tokens. This gradual release mechanism helps mitigate price impact and ensures a smoother trading experience, especially for larger volumes.

By design, one of the main features of FlowTrade is that creators' tokens are locked once deposited. This, in turn, provides a very strong assurance for subscribers that indeed, the available tokens being offered are available to buy. On the other hand, the subscriber's tokens are not locked but instead free, thereby enabling them to fine-tune their subscription based on changes in their strategy or market conditions.

Dynamic Pricing for Fair Trading

The pricing mechanism of FlowTrade is dynamic, and driven directly by the volume of subscribers' tokens adding up to a flow. That means the more subscribers adding tokens to a flow, the more the price of the creators' tokens goes up, reflecting higher demand. If subscriber participation decreases, the price falls. This demand-driven pricing fosters fairness, ensuring all participants are subject to the same market forces.

To safeguard creators' interests, FlowTrade allows them to set a minimum price for their tokens. This acts as a protective floor, preventing significant price drops and guaranteeing a baseline return, even in volatile market conditions.

Illustrative Example

Consider a scenario where a creator wishes to sell 10,000 ATOM tokens over 30 days. He initiates a FlowTrade auction, locking his tokens within the system. Subscribers bid on the available ATOM tokens using their own tokens, such as USDC. The price of the ATOM dynamically changes according to the number of USDC bids, creating a competitive and transparent marketplace. A floor price is also set in place to serve as a safety net and ensure that the creator's requirements are met when it comes to token value.

AMM Module: Yield-Optimized Trading Hub

The AMM Module equips the platform with robust support for various types of Automated Market Makers (AMMs), allowing for the creation, management, and interaction with diverse liquidity pools.

At the core of the AMM Module lies the "vault," a central entity that oversees all pools, their associated tokens, and balances. This centralized management approach streamlines pool administration, ensuring efficient operation and coordination within the ecosystem. Additionally, the vault offers gas-efficient features like batch swaps, making arbitrage opportunities more accessible and enhancing overall pool interaction.

Beyond Spot Trading: Long-Term Orders and Order Matching

Pryzm's AMM Module goes beyond simple spot trading by empowering users to place long-term trade orders with customizable price limits. These orders can be executed incrementally, utilizing time-weighted average pricing to minimize price impact. This feature caters to strategic investors who seek to optimize their trades over extended periods.

Moreover, the AMM Module incorporates an innovative order matching system. Here, proposers can suggest matching a set of orders against the AMM's current price. This mechanism facilitates greater trading efficiency and can potentially lead to improved price execution for users.

Specialized AMM Types: WAMM and YAMM

Pryzm's AMM Module supports two specialized AMM types tailored for yield trading:

  • Weighted AMM (WAMM): The WAMM introduces customizable weight ratios between assets within liquidity pools. This flexibility enables more strategic liquidity provision and trading strategies, potentially reducing impermanent loss and enhancing yield exposure. It also allows for the creation of multi-token pools, improving capital efficiency and consolidating liquidity.
  • Yield AMM (YAMM): The YAMM is specifically designed for trading principal and yield tokens, offering a seamless experience for managing these unique assets. The module automatically handles asset maturities, ensuring liquidity pools remain up-to-date and relevant. Its innovative combination of flash loans and the refracting process enables efficient trading of yield assets without requiring dedicated liquidity pools, further enhancing capital efficiency and LP yields.

PulseTrade: Dollar-Cost Averaging (DCA) Made Easy

Pryzm's PulseTrade module complements the AMM's capabilities by offering a user-friendly Dollar-Cost Averaging (DCA) solution. It allows users to invest or swap small amounts at regular intervals, minimizing price impact and facilitating a more controlled approach to trading. Users can customize their DCA plans by specifying investment amounts, time intervals, and even execution price limits, empowering them to capitalize on market fluctuations.

By addressing the challenges of illiquidity and providing tools for strategic trading and risk management, Pryzm empowers users to navigate the DeFi landscape with confidence and optimize their yield generation strategies.

Security Infrastructure: Safeguarding Yield

Imagine circuit breakers as vigilant sentinels guarding against extreme price volatility within Pryzm's AMM pools. These mechanisms act as safety valves, ensuring token prices remain within predefined limits. They operate by meticulously verifying that a token's Liquidity Provider Token (LPT) price, post-operation, stays within a pre-determined range. If this condition isn't met, the operation, such as a swap, is promptly halted.

This dynamic price monitoring is achieved through the use of two parameters for each token in the pool: a boundary (upper and lower limits) and a reference LPT price. The LPT price is calculated using a formula that accounts for the circulating supply of LP tokens, the token's weight in the pool, and its balance. If a token's LPT price goes outside the calculated bounds, the circuit breaker is triggered, preventing further trades and safeguarding the pool's stability.

Pryzm's circuit breakers are adaptive, adjusting their boundaries based on token weights. This ensures tighter control for higher-weighted tokens, offering a stricter regulatory mechanism where it matters most. Furthermore, they are integrated into various pool operations, guaranteeing comprehensive price stability across the platform.

Pause Modes: Emergency Response Mechanisms

In times of crisis or unexpected issues, Pryzm's pause modes provide essential safety measures. Both pool owners and governance entities can temporarily disable specific pool functionalities to safeguard against potential exploits or errors.

Pool Pause Mode allows for targeted intervention, temporarily suspending activities like swaps, joins, and exits. However, the 'recoveryExit' method remains available, allowing liquidity providers to retrieve their assets even in an emergency.

Functionalities Disabled During Pause Mode:

  • Updating swap fees.
  • Modifying weights in weighted pools.
  • Conducting swaps.
  • Joining and exiting operations, with the exception of 'recoveryExit'.
  • Pool initialization.
  • Introduction and removal of tokens, including pAssets for YAMM pools.
  • Setting circuit breakers.

Vault Pause Mode takes this protection a step further, enabling a chain-level pause of the entire AMM vault. This comprehensive mechanism freezes all new transactions, effectively safeguarding the vault's operations in the event of a system-wide emergency.

Functionalities Disabled During Vault Pause Mode:

  • Pool join/initiation.
  • Pool registration.
  • Token introduction and removal.
  • Swaps and batch swaps.
  • Order submission, execution, and matching.

Recovery Mode: A Safeguard for Liquidity Providers

When a pool becomes non-functional, Pryzm's Recovery Mode serves as a lifeline for liquidity providers. Activated only through governance proposals, this mode allows for a safe and orderly exit from any pool during an emergency. It deactivates protocol fees to alleviate any additional financial burden on users and mandates pools to implement a 'RecoveryModeExit' function for streamlined asset retrieval.

Pryzm has meticulously crafted a multi-layered security system that creates an environment where users can navigate the complexities of decentralized finance with confidence. This lays the groundwork for a more robust and trustworthy financial future, where safety and accessibility go hand in hand.

Empowering Developers: Building the Future of DeFi

Developers are the backbone that allows innovation and growth in the DeFi space. With that in mind, Pryzm has compiled a suite of developer tools that ensure seamless integration while empowering innovators to create modern dApps.

PryzmJS

PryzmJS is the main entry point for any developer looking to interact with the Pryzm blockchain. PryzmJS is a JavaScript SDK that enables developers to build applications capable of easily interacting with Pryzm from both Node.js environments and web browsers. It covers intuitive abstractions over basic data structures and serialization for ease of development, hence, it accelerates the process of crafting applications on top of Pryzm.

FlowtradeJS

FlowtradeJS is a purpose-built SDK responsible for streamlining and managing the interactions with the innovative FlowTrade module at Pryzm. It exposes a simple developer interface to the creation of applications with the functionality to create, join, and manage flows, claim tokens, and interact with the dynamic pricing mechanism provided by FlowTrade.

OracleJS

The OracleJS SDK provides everything necessary for a developer to easily integrate their application with Pryzm's Oracle Module. It covers functionalities related to oracle parameter queries, the delegation of feed consent, and oracle voting in participation to ensure integrity and efficiency in the use of external data in dApps.

Oracle Feeder

For developers seeking to contribute to Pryzm's data integrity, the Oracle Feeder provides a robust framework for collecting, processing, and submitting external data to the Oracle Module. This open and extensible system fosters community participation in maintaining the accuracy and reliability of on-chain data.

Development support goes way beyond SDKs and tools for Pryzm. The whole resource pool leading through integration, step-by-step tutorials, and a lot of example projects in detailed documentation enable extensive support for allowing developers to create innovative and impactful dApps within the Pryzm platform.

Conclusion

Pryzm's technological innovations, anchored in its appchain architecture and modular design, provide a solid foundation for its ambitious vision. This novel approach at yield tokenization, together with the sophistication of the AMM and trading mechanisms, empowers users with matchless control and flexibility over their investments. By addressing the limitations of traditional DeFi yield products and fostering a community-driven ecosystem, Pryzm is poised to redefine the very essence of yield optimization.

With continuous development in the fast-evolving DeFi space, Pryzm's strategic alignment with the Cosmos ecosystem and its commitment to continuous development positions it at the on the front line. The journey has just begun, but the project trajectory is crystal clear-with ongoing evolution and further expansion of its offering, Pryzm shall drive the pace in the DeFi space, unlocking new possibilities while shaping a future of yield optimization.

Resources

The information provided by DAIC, including but not limited to research, analysis, data, or other content, is offered solely for informational purposes and does not constitute investment advice, financial advice, trading advice, or any other type of advice. DAIC does not recommend the purchase, sale, or holding of any cryptocurrency or other investment.