Prism Protocol

PRISM creates continuous prediction markets that price DeFi protocol risk in real time. Users trade RISK tokens on an AMM-based market — when the price rises, it signals growing concern about a protocol's safety. Five Chainlink CRE workflows continuously monitor external data sources (DeFiLlama TVL, CoinGecko prices, GitHub commit activity) and an AI risk agent powered by Gemini LLM to autonomously update the on-chain risk price without human intervention.
When risk crosses critical thresholds, CRE workflows automatically trigger graduated protective actions: activating shield coverage for depositors, adjusting insurance pool reserves, and pausing new positions during extreme events. Users can purchase protection through the Shield Vault — depositing USDC and paying a premium tied to the current risk price — and receive proportional coverage if a crisis occurs.
The problem PRISM solves: DeFi users currently have no way to hedge against protocol-level risk in real time. Insurance protocols use static premiums and manual claims processes. PRISM replaces this with a market-driven, fully automated system where risk is continuously priced by both human traders and autonomous CRE workflows, and protective actions execute instantly when conditions deteriorate.
World ID integration ensures one-person-one-account Sybil resistance, preventing manipulation of the risk market by bots or duplicate accounts

Smart Contracts: 5 Solidity contracts (RiskMarket, ShieldVault, InsurancePool, PRISMToken, WorldIDGate) built with Foundry (Solc 0.8.24) and OpenZeppelin v5.5, deployed on a Tenderly Virtual TestNet (mainnet fork, chain ID 73571).
Chainlink CRE: 5 production workflows built with @chainlink/cre-sdk — Risk Monitor (fetches DeFiLlama TVL via ConfidentialHTTP, updates on-chain risk price via EVMClient), AI Risk Agent (aggregates 4 external APIs + Gemini LLM for multi-signal risk scoring), Threshold Controller (monitors on-chain thresholds, triggers shield/insurance actions with private transactions), Reserve Verifier (validates protocol reserves against reported TVL), and World ID Verifier (cross-chain identity relay via ConfidentialHTTP to World ID API).
Frontend: Next.js 16 with thirdweb v5 wallet connection, deployed on Vercel. Real-time on-chain data polling for risk price, shield status, and portfolio views. World ID verification via IDKit v4 widget with server-side proof verification.
Identity: World ID (device-level verification) for Sybil resistance. Users verify through the World App before trading on the risk market.