Pryzm Sunset User Guide

As part of the PRYZM chain sunsetting process, we have enabled specific pathways for users to withdraw all assets. This guide details exactly how to handle each token type, how to exit Liquidity Pools, and how to understand the redemption value of your derivatives (pASSET and yASSET).

All of the actions explained in this document are available to you on the portfolio page accessible through to top navigation bar:

1. Standard IBC Tokens (ATOM, OSMO, USDC, etc.)

Status: Move Immediately

Action: Transfer to Source Chain

If you hold standard tokens that were bridged to PRYZM (e.g., ibc/ATOM, ibc/USDC), you simply need to bridge them back to their original chain.

• How to withdraw:

  1. Go to the Portfolio page.

  2. Click the “Bridge Out” button.

     

  3. (Alternative) You can also use the Deposit page on the PRYZM app (or go.skip.build).

  4. Select the token and transfer it back to its source chain (e.g., send ATOM back to Cosmos Hub).

Important Note: Make sure that you transfer each token to its source chain (where the token came from), o.w. you will need to transfer back to pryzm chain again which might not be possible in future.

2. YAMM Liquidity Pool (LP) Tokens

Status: Recovery Mode Active

Action: Withdraw Liquidity (No Swaps)

To protect user value and prevent volatility, all Yield AMM pools will be paused and placed in Recovery Mode.

• What is this Mode?

  Swapping is disabled. You cannot trade Token A for Token B. You can only withdraw your liquidity. This prevents "runs" on the pool where faster users drain the valuable tokens.

• How to withdraw:

  1. Go to your Portfolio page and scroll down to the LP Tokens section.

  2. Locate your YAMM LP Tokens.

  3. Click the Recovery Exit button.

     

  4. Enter the amount of LP tokens you wish to burn (we recommend choosing Max).

     

  5. Result: You will receive a proportional share of all tokens remaining in the pool (e.g., if you own 1% of the LP tokens, you get 1% of the remaining Token A and 1% of Token B).

3. Other Liquidity Pool (LP) Tokens

For liquidity pools other than the YAMM pools, trading will be allowed so you can either trade your LP tokens for any other available token or withdraw liquidity proportionally.

3. cASSETs (Collateralized Assets)

Status: Unbonding in Progress

Action: Wait for Unbond & Burn

cASSETs represent staked tokens on other chains (e.g., cATOM).

• The Process: The PRYZM protocol will initiate a mass-undelegation of all underlying assets from the host chains.
• How to withdraw:

  1. Wait: You must wait for the unbonding period to conclude (e.g., 21 days for ATOM) so the tokens can return to the PRYZM vault.

  2. Redeem: Once unbonded, go to the Portfolio page and click the Redeem button.

     

  3. Redeem: On the form choose the amount you want to redeem (we recommend choosing max), and click redeem.

     

  4. Result: This burns your cASSET and gives you the underlying token (e.g., Burn 1 cATOM → Receive 1.3 ATOM based on the current exchange rate).

Note: You do not need to manually "unbond" or mint uASSETs; the protocol handles the bulk unbonding.

4. pASSETs and yASSETs (Principal & Yield Tokens)

Status: Valuation Update

Action: Redeem for Share of cASSET

Since the chain is shutting sunsetting (or the asset is being delisted), "Active" maturities might never reach their full term. We have introduced a Fair Value Redemption mechanism that allows you to redeem either pASSETs or yASSETs for their current fair value in cASSETs.

Step A: Check Your Maturity Status

The rules differ depending on whether your maturity date has already passed or is still active at the delist time.

Case 1: Expired Maturities

(The date of maturity passed BEFORE the sunsetting/delisting starts)

• Status: These function normally. The Principal is fully grown.
• pASSET Holders: You are entitled to 100% of the underlying asset. Redeem 1 pASSET = 1 ASSET.
• yASSET Holders: Your tokens have expired and have served their purpose. They have no redemption value for the principal.

Case 2: Active Maturities

(The date of maturity is after the time delist starts)

• Status: The term has been cut short.
• The Solution: You can now redeem both pASSETs and yASSETs. The value is split between them based on a fixed rate called $P_{uat}$.
• Action:

  1. Go to the Portfolio page.

  2. On the “Yield Token” and “Principal Token” sections you can choose to redeem.

     

  3. On the redeem form you are allowed to enter any number (bounded by your wallet balance), and even leave one of the fields to 0.

     

Important Notes:

1. ****Even if a yASSET expires after the delisting has started, this fixed rate remains effective.
2. If your tokens are staked in yStaking or a campaign, you can unstake them immediately and redeem, even if the maturity date is still in the future.

Step B: How Your Return is Calculated (Active Maturities)

For active maturities, the protocol defines a specific rate called $P_{uat}$ (pASSET price in underlying asset terms). This rate determines how much ASSET a pASSET holder gets. The yASSET holder receives the remainder.

Note, based on the market, the pASSET price might be set to 1 leaving no value for the yASSET (this might happen for tokens close to maturity).

Where does this rate come from?

The $P_{uat}$ is set by the protocol administrators. It is derived from the average staking yields or AMM market prices at the time of the shutdown/delisting to ensure a fair exit value.

1. pASSET Value

You receive the $P_{uat}$ amount of underlying asset in form of cASSET tokens for every token you hold.

$$\text{Value of 1 pASSET} = P_{uat} ASSET = \frac{P_{uat}}{\text{exchange rate}} cASSET$$

Example:

If the admins set $P_{uat}$ to 0.9, and the exchange rate is 2:

Redeeming 1 pASSET gives you 0.45 cASSET.

2. yASSET Value

The yASSET receives the remaining share of the underlying asset.

$$\text{Value of 1 yASSET} = 1 - P_{uat}$$

Example (continued):

If $P_{uat}$ is 0.9, exchange rate is 2:

Value = $1 - 0.9 = 0.1 ASSET = 0.05 cASSET$

Redeeming 1 yASSET gives you 0.05 cASSET.

Summary Checklist

Token Type	Action Required	What you get
IBC Tokens	Bridge Out	Original Token (on source chain)
YAMM LP Tokens	Exit Pool (Recovery Mode)	Mixed basket of pool assets
Other LP Tokens	Exit Pool / Trade	Mixed basket of pool assets or traded tokens
cASSET	Burn / Redeem	Underlying Token (after unbonding)
Expired pASSET	Redeem	1 cASSET
Active (at delist time) pASSET	Redeem	$P_{uat}$ share of ASSET
Active (at delist time) yASSET	Redeem	$(1 - P_{uat})$ share of ASSET