Prism x Nexus Protocol: The nexPRISM Lockdrop

4 min readMay 5, 2022


The Nexus Protocol nexPRISM Lockdrop is LIVE!

Lock your $xPRISM for 1, 3, 6 or 10 months for your share of 25m $PSI tokens.

Let’s dive into the details on why you might participate in the nexPRISM Lockdrop…

Prism Protocol & the AMPS Vault:

Prism Protocol users can pledge their $xPRISM to the AMPS Vault to accumulate AMPS — AMPS are like protocol loyalty points that will confer additional benefits upon the holder.

Initially the function of AMPS will be to give the user a share of the 20% boost pool in Prism Farm

The AMPS vault has been running for 70 days & one of the trade offs of the AMPS model is that for new participants it will take time to build up their AMPS to increase their share of the boosted Prism Farm rewards.

Step in @NexusProtocol…

Profiles of potential participants:

nexPRISM will appeal most to 4 distinct groups:

  • Those who hold $xPRISM but not $yLUNA
  • Those who are farming with $yLUNA but don’t hold $xPRISM
  • Those who are new to Prism Protocol and want to catch up their yield potential quickly
  • Smaller size Prism Farm participants

nexPRISM Lockdrop Mechanism:

The Lockdrop will take place over 5 days. Days 1–4 you can deposit and withdraw $xPRISM freely. The longer you lock up, the higher your share of the $PSI rewards.

On Day 5 you can withdraw should you wish, but the amount you can withdraw reduces over time.

For $xPRISM locked by participants, 50% will be deposited into the Prism AMPS contract & nexPRISM will be minted. The other 50% will be used to create liquidity in the nexPRISM/xPRISM pair. You will be credited with LP tokens which can be withdrawn at the end of your lock period.

The xPRISM/nexPRISM LP will be particularly interesting to users as it will have minimal impermanent loss (given one asset is a derivative of the other — think $LUNA / $bLUNA) & both assets will be continuously autocompounding.

Beyond the Lockdrop:

Following the initial lockdrop event Nexus will open up 2 vaults: the $yLUNA vault & the nexPRISM vault.

Users will be able to start depositing $yLUNA and taking advantage of the fact that Nexus is accumulating AMPS that will help boost their $PRISM yield without needing to hold $xPRISM & accumulate their own AMPS.

In the nexPRISM vault, users will be able to deposit $xPRISM, in exchange for nexPRISM and they will also accumulate yield in the form of additional $xPRISM.

Yield is paid out to both vaults as Nexus will seek to create the perfect balance of $xPRISM:$yLUNA in order to maximise Prism Farm yield for all participants and will be dynamically adjusted across the 2 vaults depending on whether Nexus need to accumulate $yLUNA or $xPRISM.

There will also be a 5% cut of all the yield that Nexus generate from Prism Farm that is paid to $PSI governance stakers in the form of nexPRISM.

Prism Governance Wars:

So Nexus start to create a flywheel effect where they continue to incentivise increasing amounts of $yLUNA & $xPRISM to be deposited into their vault whilst also providing value to their own governance stakers.

This starts to get more interesting when $xPRISM governance is implemented. Accumulated AMPS will have a direct impact on governance power on Prism Protocol. Governance holders will get to vote on things like liquidity incentives for newly refracted pairs and the validators that make up the Prism validator set.

If Nexus are able to start accumulating significant governance power on Prism Protocol they may start to attract bribes from interested parties; whether that be protocols that are looking to refract their tokens & have the liquidity pairs incentivised or validators who want to break into the Prism validator set.

At time of writing Nexus have accumulated almost 1m $xPRISM:

We have heard about the $ASTRO wars on Astroport — Nexus are looking to put themselves in pole position for potential Prism governance wars in the future.




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