PRISM is a revolutionary derivatives protocol that introduces new asset classes in DeFi, allowing users to manage the risks associated with volatile prices and unstable yields in a simple and capital efficient manner. PRISM achieves this by refracting digital assets into two distinct parts: a yield component and a principal component. Just as a glass prism splits a beam of light into separate colors, PRISM enables users to split a yield-generating asset into its most basic components& a Yield Token (YT) and a Principal Token (PT). These new assets will allow users to isolate the exact risks they wish to speculate on or protect against. By creating a new marketplace to trade these Principal and Yield Tokens, PRISM empowers users with new opportunities, including the ability to:Borrow with no liquidation risk or daily funding costs by monetiring an asset’s future yield Swap variable-rate yields to fixed-rate yields Take leveraged exposure to an asset’s price or yield Manage exposure to currency risks by converting future yield instantly into any Terra stablecoin Participate in capital-efficient liquid staking to receive physical delivery of all staking rewards including airdrops, while being able to trade these assets instantly or deploy them elsewhere in DeFi Gain or swap exposure to other yield-bearing assets through the PRISM marketplace Automatically claim all airdrops in PRISM with no need to access any other protocol Reduce the administrative burden of compiling and reporting yield income and airdrops.PRISM holders who wish to participate in governance and earn protocol fees can stake their PRISM tokens and receive xPRISM in return, with a 21-day unbonding period. Users of the protocol will generate fees which will be collected, converted to PRISM tokens, and then distributed into the xPRISM pool.