Vault Strategies

Within the Primis Protocol, a key feature is the Liquid Staking Power (LSP) liquidity provision mechanism, where staked PRM tokens function as utility tokens. These tokens enable users to influence the allocation of the protocol's Liquid Staking Tokens (LSTs), deposited via the bonds, directing them towards various Vaults or Strategies. Essentially, users staking their PRM have the capacity to shape how the LST liquidity is deployed within the protocol, with Primis Protocol serving as a universal manager for LST strategies. This system empowers users by granting them a say in the strategic direction of the protocol's assets, enhancing the protocol's adaptability and potential for yield generation.

LST Strategy Manager

The Primis Protocol aims to be a comprehensive platform for liquid staking and decentralized finance (DeFi) by incorporating a wide range of vaults and strategies from various liquid staking protocols. This is a key aspect of our strategy management system and signifies our commitment to ecosystem integration. Below is a preliminary list of potential and currently integrated protocols/strategies, showcasing the diversity and breadth of our partnerships:

• EigenLayer: Specializing in restaking solutions.

• InstaDapp Lite: Offers vault and leveraged yield opportunities.

• Sommelier: Provides vault and leveraged yield strategies.

• Prisma Finance: Focuses on LST-backed stablecoins.

• Lybra Finance: Another provider of LST-backed stablecoins.

This selection represents just a fraction of the collaborations we either envision or have already actualized within the Primis Protocol. Our goal is to establish Primis Protocol as a versatile and decentralized platform that supports extensive control over and participation in a variety of liquid staking opportunities and DeFi strategies. Through these integrations, Primis Protocol stands as a central hub for seamless liquid staking across the burgeoning landscape of DeFi protocols and strategies.

Strategy Integration

The Primis Protocol is dedicated to creating a fully decentralized infrastructure for liquid staking through a comprehensive treasury management system. This system is designed to allow users active participation in integrating with a variety of protocols and strategies. As part of this decentralized approach, the governance system under PrimisDAO plays a pivotal role, enabling users to propose and vote on strategic integrations, prioritize these integrations, and conduct risk assessments and analysis reviews.

This governance process ensures that the development and evolution of the Primis Protocol are guided by its community, reflecting the collective priorities and risk tolerance of its users. By empowering users to shape the protocol's strategic direction, Primis Protocol aligns with the ethos of decentralized finance, promoting transparency, user involvement, and adaptability in navigating the DeFi ecosystem.

Staking PRM

Users holding staked PRM tokens have the unique ability to allocate their Liquid Staking Power (LSP) and meta-Liquid Staking Tokens (meta-LST) across a variety of protocols and strategies. This allocation enables users to tap into additional yield opportunities, which then contribute to the overall rebasing calculation for PRM staking rewards. Essentially, the yield earned from these strategic allocations influences the floating yield rate, which forms the basis of the rebasing rewards for staked PRM tokens. This system creates a dynamic reward mechanism that directly benefits from the diverse and potentially lucrative yields generated through active participation in the broader DeFi ecosystem.

Strategy Yield

The additional yields generated by employing various strategies with bond deposits are integrated into the overall returns of those deposits, playing a crucial role in determining the rebasing rewards. This mechanism introduces an extra layer to the floating yield rate, enhancing the protocol's functionality for those staking PRM tokens. Consequently, stakeholders benefit from an augmented reward structure that includes not only the base fixed-rate yields associated with bond deposits but also the supplementary yields procured through strategic allocations.

This arrangement underscores the protocol's yield-splitting process, wherein the concentrated yield is significantly influenced by these additional earnings. It's a design that not only optimizes return potentials for participants but also reinforces the protocol's dynamic adaptability, leveraging diverse yield-generating strategies to bolster the value and attractiveness of staking PRM.

Additional Rewards

In implementing these strategies, there's a clear opportunity to earn additional rewards in the form of protocol tokens from the various integrated protocols. These tokens become a valuable component of our treasury, further backing the PRM tokens. Regarded as supplementary rewards, they enhance the overall strategy yields and contribute to the treasury's robustness.

The disposition of these additional rewards is determined through the governance process facilitated by PrimisDAO. The community has the discretion to decide how these rewards are utilized, with options including conversion into more Liquid Staking Tokens (LSTs) to reinforce the backing of PRM. Any such conversions are factored into the rebase reward calculations, thereby increasing the rewards distributed to PRM stakers.

This model emphasizes the dynamic and community-driven approach to treasury management and reward distribution within the Primis Protocol, ensuring that the protocol remains adaptable and responsive to the evolving DeFi landscape.