Research Summary
This report discusses the recent developments in the DeFi and NFT sectors. It highlights the emergence of Prisma Finance, a new CDP protocol, and its potential advantages due to its ties with the Curve ecosystem. The report also covers the success of Pudgy’s, an NFT project that has seen significant growth and has recently launched toys in Walmart stores across the US.
Key Takeaways
Prisma Finance: A New Entrant in the DeFi Space
- Prisma’s Unique Value Proposition: Prisma Finance is a new CDP protocol that allows users to deposit ETH liquid staking derivatives as collateral and mint mkUSD. It is similar to other projects launched post Shanghai, but its close ties to the Curve ecosystem set it apart.
- Backing from Prominent Entities: Prisma’s backers include the founder of Curve, the Convex founders, FRAX Finance, Conic Finance, and more. This positions Prisma to benefit from incentivised liquidity on Curve and Convex.
- Attractive Yields Despite Challenges: Despite the recent Curve drama, Prisma’s mkUSD minting caps have been maxed out, indicating a positive response from the market.
Pudgy’s: An NFT Success Story
- Revival of a Dying NFT Project: Pudgy’s, an NFT project that was bought out by Luca Netz, has seen significant success. The project has now launched toys in Walmart stores across the US.
- Direct Licensing and Royalties: Each toy is licensed directly from the holder of the NFT counterpart, and they receive royalties on every sale.
- Price Appreciation: Over the last six months, Pudgy’s is the only collection that has appreciated in price, with all others down by more than 60%.
Actionable Insights
- Monitor Prisma’s Progress: Given its unique value proposition and backing from prominent entities, Prisma Finance is a project to watch in the DeFi space.
- Investigate the Potential of NFTs: The success of Pudgy’s demonstrates the potential of NFTs, not just in the digital world, but also in the physical world. This suggests that there may be opportunities in the NFT space that extend beyond digital assets.
