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DeFi News

Prisma Finance Plans to Safely Restart the Protocol Post-hack 

Written By Ezra Kaimenyi
Published April 5, 2024 5:32 PM·Updated 7 months ago
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Prisma Finance Plans to Safely Restart the Protocol Post-hack

Prisma Finance has laid out a comprehensive plan to restart its Prisma protocol, which faced a suspension on March 28 due to a security breach resulting in a loss of $11.6 million.

In response to the incident, Frank Olson, a key figure within Prisma Finance, proposed a method to “safely” restart the protocol. This approach involves allowing users to deposit liquid staking tokens (LSTs) once again and liquid restaking tokens (LRTs), alongside reactivating the facility for borrowing overcollateralized stablecoins.

New Snapshot Vote: [PIP-036] 🌈

As we progress towards unpausing Prisma, the next step involves this Snapshot vote. This will bring us closer to re-enabling the ability for our users to deposit LSTs & LRTs and borrow our overcollateralized stablecoins.

Your participation is… pic.twitter.com/pG81WpFVN3

— Prisma Finance (@PrismaFi) April 4, 2024

Following the proposal, the Prisma Finance DAO initiated a four-day governance vote that concluded on April 7. Olson revealed that the proposal has garnered unanimous support from the DAO’s voting members thus far, indicating robust backing for reinstating borrowing services.

The protocol has identified ongoing risks, acknowledging that 14 accounts have yet to withdraw from the compromised smart contract, potentially leading to further losses of up to $540,000. In efforts to fortify its security measures, Prisma is adopting continuous auditing services, enhancing bug bounty programs, and implementing various security upgrades.

The unanimous voting outcome thus far underscores the community’s confidence in Prisma Finance’s remediation strategies and its commitment to securing the platform against future vulnerabilities.

Also Read: Prisma Finance’s $540K Still at Risk, Hacker Demands Apology

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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