[PIP-043] Prisma Finance <> Moebius Finance acquistion

This proposal is the work of the team behind Moebius Finance in collaboration with core contributors of Prisma Finance. We welcome feedback and engagement (both on the forum and directly to us) about this proposal and how it can drive success for Prisma.

Motivation

Prisma Finance is a non-custodial borrowing protocol collateralizing liquid staking tokens to mint a decentralized, censorship-resistant stablecoin (mkUSD). Since launching in September 2023, Prisma has successfully grown its TVL close to $500 million at its peak and subsequently launched an additional stablecoin backed by liquid restaking tokens (ULTRA). In this time, the DAO has gained significant attention while contributing to the decentralized stablecoin and DeFi space.

Stablecoins fundamentally changed the way we transfer value and transact between ourselves across the blockchain. Prisma has built two powerful stablecoins, providing a trustless foundational unit of account in DeFi.

Building on this success, Prisma should be ready to explore integrations that would strengthen itself and enable new types of services beyond borrowing. With the introduction of restaking there is a tremendous opportunity for growth and innovation of revenue streams in what has quickly become one of the most exciting new primitives.

Introducing Moebius Finance

Moebius is a universal meta-restaking protocol that unifies restaking across multiple protocols, allowing anyone to mint liquid restaking tokens starting with Karak and EigenLayer.

Karak’s multi-asset restaking is a new primitive in cryptoeconomic security allowing Moebius to leverage almost any asset for restaking. mkUSD and ULTRA play perfectly together allowing Moebius to access additional assets to mint its LRTs.

With more than 9 months of development, Moebius Finance successfully completed an audit with BailSec, securing the protocol mechanisms and smart contract architecture.

Moebius appreciates the community, reach and presence Prisma has in the market and believes this merger will give them a significant head start. In addition the overlap between the two teams will be beneficial for both projects in growing the services that can be offered and powered by Moebius LRTs, including rollups and AVS solutions.

Team

The Moebius team is composed of multiple experienced DeFi contributors and builders who have been thoroughly vetted by the Prisma core contributors. The dev team is composed of former members from Maker, yEarn, and Curve.

Terms of acquisition

The following section summarizes the terms of the acquisition:

  • $180,000 paid to Moebius by the Prisma Grants Program.

Timeline

  • The PRFC will be open for discussion for 7 days until June 23 2024.

  • A snapshot vote will be posted on June 23, 2024 for voting, open for 3 days, concluding June 26, 2024.

  • After the completion of the snapshot, the outcome of the vote will be executed immediately and the Moebius team will be onboarded to Prisma.

  • If successful, Moebius will launch on Mainnet shortly after completion with Prisma community members receiving priority access during a guarded launch.

Key Benefits

Prisma’s community and ecosystem partners can help quickly accelerate Moebius as a dominant liquid restaking protocol. Moebius protocol has its unified restaking platform and is working with infrastructure providers to help projects build services like rollups using Moebius LRTs. These options bring more revenue generating opportunities for Prisma and the DAO in addition to Moebius token and token distribution will be at the discretion of the DAO.

More info: Moebius Finance | Introducing Moebius

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Today marks a monumental day for Prisma, its community, and the DAO as we take the next step toward unlocking the full potential of liquid restaking tokens by proposing the integration of Moebius into our fold.

The acquisition marks a significant stride by solidifying our intent and capability to build the end game for liquid (re)staking tokens. Prisma will remain deeply committed to advancing its existing borrowing offerings, through Prisma—notably, our latest collateral listings and plans to expand to other ecosystems have been a driving force.

Restaking has become one of the most exciting new primitives and is reshaping how we validate new applications built on top of Ethereum - Our enthusiasm is stoked by the limitless possibilities that restaking opens up - solving various challenges and contributing to an more decentralized and secure ecosystem.

Under Prisma, Moebius is building transformative products that people use and love adhering to Prisma’s core principles and dedication to high-quality design, usability, and functionality. With restaking capabilities increasingly interwoven into the core infrastructure offerings of tomorrow, we believe this integration will foster endless new opportunities in a future where anything is possible.

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Could you be more specific about the Moebius team, would they be joining the Prisma team or moving on to something else?

Is the idea of the partnership that Moebius issues an LRT token (or multiple tokens) and that users can use them as collateral in Prisma? Are there other avenues of collaboration between the two protocols?

Does Moebius have a revenue model, i.e. a % of restaking fees?

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The team would be joining. Essentially the Prisma DAO is buying an unlaunched protocol with an audited codebase ready to launch. At some point when the Moebius LRTs have oracles they can be listed on Prisma. The revenue model is the same as all of the other LRT protocols, generating revenue from AVS and underlying services that they secure.

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Got it. I’m supportive.

Can we confirm the devs are not North Korean?

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We have known them for a while now and can confirm that they are not North Korean

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How will prisma find AVSs that want to use its protocol. Are there any lined up yet? What is a reasonable timeline to find 1 or ideally more?