prmETH : Hyper Liquid Staking
Last updated
Last updated
When you make a deposit into the Primis Bond, you're issued a bond NFT that signifies your principal deposit, whether in ETH or LSTs. Concurrently, you mint an equivalent amount in prmETH, our hyperliquid principal LST, reflecting your deposit.
The principal LST, prmETH, symbolizes the LSTs bonded through the Primis Bond, lacking inherent yield but providing liquidity for your deposit. Additionally, it enables you to reap bond rewards in PRM tokens. Essentially, you receive PRM tokens and hold prmETH, which is yield-less but can be staked to earn compressed or concentrated yield via the yield token.
With the introduction of this system, you're presented with a wide array of yield generation possibilities. Through the mechanism of bond supply, you can generate and sell yield tokens, thereby earning fees from the trading activities associated with your LST yield. Simultaneously, you maintain access to your initial deposit in the form of our native LST, now devoid of yield and regarded as the principal LST.
Furthermore, you have the opportunity to leverage PRM tokens by pairing prmETH with PRM or other LSTs, thereby unlocking additional yield avenues. Alternatively, you can exchange your prmETH for different LSTs and reinvest them into new bonds. These bonds are freely tradeable on the market, opening up arbitrage possibilities where bonds can be bought and sold, and prmETH acquired at a discount can be used to profitably redeem the bond's principal deposit.
This system epitomizes a hyperliquid LST environment, fostering a highly liquid and capital-efficient market without the need for leverage or the risk of liquidation. It enhances the protocol's yield generation capabilities, significantly amplifying the staking yields of the PRM token, thus creating an optimized environment for yield maximization.
When deposits are made into bonds, prmETH is automatically generated. A specified portion of this, designated as the bond fee, is then segregated and transferred to the treasury along with the original bond deposit. This process effectively earmarks a fraction of the minted prmETH as bond fees, earmarking these funds for use by the protocol. This operation enables the protocol to accumulate Protocol Owned Liquidity (POL), allowing it to autonomously manage and supply its liquidity, acting as a liquidity provider (LP) for market activities.
Simultaneously, the segment of the underlying deposit allocated as the bond fee is incorporated into the Treasury Backing. This action not only enhances the treasury's asset base but also contributes to creating a more robust backing for the PRM token. This approach ensures a dual benefit: it strengthens the protocol's financial base through POL, facilitating effective market making, and enhances the intrinsic value of the PRM token by ensuring it is over-backed, thereby increasing its security and stability.
