[PIP-032] Introducing smkUSD - a stability pool liquid reward earning mkUSD


The Prisma team is in the process of finalizing smkUSD which is a liquid version of mkUSD deposited in the stability pool (SP).


The stability pool is a key part of Prisma, it’s important that there always remains healthy liquidity to secure the protocol. More importantly, directing more emissions towards the stability pool and previous weeks has helped stabilize mkUSD which is once again unfortunately trending again towards $0.995.

smkUSD would receive a new receiver to increase rewards and incentives for being in the stability pool with the hope that it consolidates liquidity there. We’d also eventually like rewards from fee distribution to be given as smkUSD to encourage users to leave their mkUSD staked in the SP.


smkUSD is an interesting concept because it allows the following:

  • Users remain liquid and can loan it/leverage it while still providing critical liquidity to the SP
  • It still gives users PRISMA rewards that can be claimed as a basket of yPRISMA and cvxPRISMA (working name LLPRISMA)
  • It automatically sells LSTs from liquidations and autocompounds it meaning your underlying balance of mkUSD grows continuously

As rewards of PRISMA are locked and vested, the rewards will be distributed as a basket of liquid lockers (currently yPRISMA and cvxPRISMA although more could be added). They will be claimed for each locker on a round robin basis.


We are finalizing the codebase for it and would like to begin auditing smkUSD as soon as possible. This is why we are requesting community feedback on smkUSD, to find out if it can be improved and you also think it is a worthwhile addition to PRISMA.


Audits will complete by mid January and we will follow up shortly after with a vote.

1 Like