Prism Portfolios Provide Simple Diversification To Ether Investors
Built by Swiss blockchain technology company ShapeShift AG, Prism pioneers into the realm of virtual currency portfolios, offering a service which will help investors turn their Ether into other cryptocurrencies with the world's first trustless platform for creating diverse assets. The platform is currently undergoing an invite-only beta testing period—invites are granted periodically at the discretion of ShapeShift.
Announced today at Consensus 2017, ShapeShift CEO Erik Voorhees thinks Prism is a game changer for the blockchain ecosystem.
"Prism is perhaps the first commercial demonstration of the revolutionary power of smart contracts generally, and the Ethereum platform in particular,” said Voorhees.
Prism uses executable distributed code contracts (EDCCs), entirely on the Ethereum global network, to generate custom management tools for portfolios. The platform eliminates intermediaries and the complicated process of storing multiple private keys and wallets. Prism may represent a paradigm shift according to Voorhees:
“Gone are the days of trusting a 3rd party with one’s wealth. Prism’s digital asset portfolios, built entirely on non-custodial smart-contracts, demonstrate a new standard in financial security.”
Using the Prism web interface, users can create a portfolio and choose how much Ether to divide among a growing list of cryptocurrencies. Prism requires an Ethereum address, from which Ether can be sent to the platform and be diversified. Once a portfolio is created, an investor controls an EDCC which pays back Ethereum based on the portfolio's performance. Investors may use the graphical user interface (GUI) on the site to track their portfolios and monitor their values. Liquidation occurs once an empty transaction is sent to the provided Ethereum address, at which point the EDCC is signaled to close the portfolio. Should the components of the Prism gain value, the investor will receive it, less displayed fees.
Fees are disclosed by Prism:
"Closing fee of 2.4% + 0.05 ETH (waived during closed beta)
Monthly capital fee of 1%
Rebalancing fee 0.5% (only if you rebalance)"
Support is enabled for Exodus.io, Jaxx.io, and MyEtherWallet addresses.
While in the beta phase, developers acknowledge there may be bugs and glitches, so investors must assume any Ether deposited as collateral may be lost. The first of three planned security audits was conducted by Piper Merriam and the results will be published before the project comes out of beta.
Prism's security is chief among lead engineer Raine Revere's concerns:
“As an engineer, I knew that the success of Prism would depend on every detail of functionality, architecture, and security. We built Prism from the ground up – smart contracts, back-end, and front-end – taking into account every possible use case and every possible participant and their incentives.”
Casting a forward glance, Voorhees believes Prism will break down FinTech related boundaries.
“Prism takes us one step closer to a world of truly borderless finance," said Voorhees. "We suspect it will kickstart a vast horizon of financial experimentation upon smart contracts."