PIP-48 Final PRISMA Shutdown Actions
Summary
This proposal is designed to pave the way for Resupply Finance and encourage remaining users of Prisma to exit their positions. It establishes clear deadlines and consequences for failing to act. Remaining users should read carefully and act quickly in order to avoid any issues. Upon execution of this proposal:
- borrowing interest rates on all vaults will increase to 50%
- all unclaimed PRISMA emissions will be eliminated
- reimbursement of 200 crvUSD (debt gas compensation) will be sent only to users who closed loans via PSM before this proposal goes on chain.
Background and Motivation
After PIP-46, Prisma Finance is no longer issuing new loans and has ceased distribution of emissions and protocol revenue.
This proposal outlines the final governance measures designed to encourage all remaining users to exit their loans and claim their emissions, ensuring a smooth transition to Resupply.
Specification
- Put all Prisma and PrismaLRT Trove Managers into “sunset” mode:
- Interest rates on all trove managers will immediately increase to 50%.
- Redemption fees will be set to 0%.
- Action: Remaining borrowers must close their loans to avoid steep increase in interest rates. To avoid paying above-market prices for mkUSD or ULTRA, it is recommended to use the new PSMs which allow repayment using crvUSD at 1:1 rate.
- Boost Calculator Update:
- Replace the boost calculator with one that returns zero for all future claims, eliminating all unclaimed PRISMA emissions for all users.
- This action is meant to finalize the circulating PRISMA supply, and fix the RSUP redemption ratio.
- Action: Users with unclaimed PRISMA emissions must claim in order to avoid 100% forfeiture.
- Debt Fee Reimbursement:
- Eligble users who have fully closed their vaults via a PSM before this proposal goes on-chain will receive a reimbursement of 200 crvUSD.
- Users who use a PSM to close their loan after January 11th 00:00 UTC 2025 will no longer be eligible.