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Prisma Finance: Restarting with DAO Support

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Prisma Finance: Restarting with DAO Support

Prisma Finance has come up with a plan to resume the Prisma protocol after it was halted due to a hack that resulted in a loss of $11.6 million. In order to enable borrowing on Prisma again, there needs to be a consensus through a voting process. Frank Olson, a core contributor to Prisma Finance, proposed a safe way to unpause the protocol and allow users to deposit liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) and borrow overcollateralized stablecoins. A governance vote was initiated by Prisma DAO, which will last for four days and end on April 7th. Olson emphasized that unpausing the protocol is crucial for its recovery and will restore normal functionality.

The proposal to re-enable borrowing on Prisma has received unanimous support from the participating DAO members so far. The final decision will be made after the voting deadline. Users are warned to revoke their delegate approvals with open positions as unpausing the protocol could potentially lead to loss of funds. The protocol has identified 14 accounts that have not yet revoked the affected smart contract, which may result in a cumulative loss of $540,000.

Olson also mentioned Prisma’s ongoing efforts to reduce future risks, including continuous auditing services, bug bounty programs, and security enhancements. Another company, Munchables, which deals with nonfungible tokens (NFTs), has developed a plan to prevent a similar situation where it lost and recovered approximately $63 million due to an internal developer. The plan involves involving investment firm Manifold Trading, market maker Selini Capital, and blockchain investigator ZachXBT as new multisig signers to ensure the safe return of funds. Munchables also intends to reward those involved in the recovery process by donating ETH and future MUNCH donations.

Prisma Finance is working towards resuming the Prisma protocol safely after the hack. They have proposed a plan that has gained strong support from the community through a governance vote. The final decision is yet to be made. Users are advised to take precautions and revoke delegate approvals to avoid potential losses. Prisma is committed to enhancing security measures to mitigate future risks. Munchables has devised a plan to prevent a repeat of its previous loss and reward those involved in the recovery process.

1 thought on “Prisma Finance: Restarting with DAO Support

  1. million lost?! That’s a huge blow! How can we trust Prisma Finance again?

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