Investors with an appetite for cryptocurrencies, which have been booming lately, can now create their own digital asset portfolios of any allocation, using Prism – the world’s first trustless asset portfolio platform – built entirely on Ethereum-based smart contracts, and launched by Swiss Blockchain technology company ShapeShift AG.
The Prism platform is the easiest and most secure way for investors to manage baskets of digital assets without having to trust a third-party with their funds. In a matter of minutes, an investor can create their crypto portfolio, gain exposure to a wide range of tokens, and secure their investment without having to maintain unique wallets for each asset.
Through this platform, investors create their portfolios, known as Prisms, by funding a smart contract address with Ether. This Prism represents an allocation of digital assets chosen by the investor, which rises or falls based on the collective performance of those assets. To create a Prism, the investors visit the website Prism.Exchange, then follow a short series of steps:
After naming their Prism, the investor will choose the assets they would like to distribute their portfolio between, such as Dash, Bitcoin, Litecoin, Monero, Ripple, Golem and many more, then determine the percentage of their investment per asset.
The investor will then provide the Ethereum address that will allow the them to fund and track their Prism. That address gives them exclusive control of their funds.
They will fund their Prism by sending a specific amount of Ether as collateral to the displayed Ethereum smart contract address, which will then initiate several steps to track and secure their portfolio on the Ethereum network.
Now that the Prism has been created, the investor can watch the current value of their portfolio, which will rise and fall with the value of the underlying assets.
At some point in the future, when the investor is ready to close their Prism, they will be prompted to send a zero ETH transaction to a provided Ethereum address that will signal the smart contract to close the portfolio. If the Prism’s components went up 20%, the investor will receive 20% more Ether back then they put in, minus displayed fees.
Prism was built by the pioneering Swiss Blockchain technology company, ShapeShift AG, which raised a $10.4m Series A from leading German VCs in March 2017. Erik Voorhees, CEO of ShapeShift, said: “Prism enables investors to gain secure, transparent exposure to digital assets in a way that has never before been possible. The days of leaving funds at an exchange ‘because it’s easier’ are over.”
The popularity of Bitcoin and other cryptocurrencies as an alternative investment class is growing, with the combined market cap expanding over 200% in the past year to over $40 billion. The Blockchain industry has already seen an incredible diversity of projects, from tokenized venture capital funds to Blockchain-based casinos to global distributed computing systems. Prism is the first live platform that enables investors to create their own funds focused on investments in crypto-assets.
ShapeShift leveraged their proven model of simplicity and security in the build of Prism, where the complex functionality of a diversified crypto portfolio was distilled down into a simple interface: buy, rebalance, and settle, all of which the user can execute with nothing more than their Ethereum wallet. The entire process occurs without either side having to trust the other.
“Prism’s digital asset portfolios, built entirely on non-custodial smart-contracts, demonstrates a new standard in financial security,” continued Voorhees.
Once a Prism has been created, it is positioned on a leaderboard, enabling investors to share public Prism performance, benchmark against other top traders and automatically copy their portfolios via a smart contract.
“Prism takes us one step closer to a world of truly borderless finance. We suspect it will kickstart a vast horizon of financial experimentation upon smart contracts,” concluded Voorhees.
Prism is currently available as a closed-beta platform. Interested users can apply for entry at prism.exchange/signup.