Prisma Finance, following a hack of $11.6 million on March 28, has proposed a plan to safely unpause the Prisma protocol and enable borrowing once again. This decision requires consensus through a governance vote.
On April 3, Prisma Finance core contributor Frank Olson introduced a proposal to unpause the protocol and allow users to deposit liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) while borrowing overcollateralized stablecoins. Subsequently, the Prisma Finance DAO initiated a four-day governance vote, scheduled to conclude on April 7.
Olson emphasized that unpausing the protocol is crucial for the recovery process, restoring normal functionality, and enabling complete Vault management and deposits into the Stability Pool.
As of now, the proposal has garnered 100% “Yes” votes from participating DAO members, indicating strong community backing. However, the final decision will be determined after the voting deadline.
Users are cautioned to revoke delegate approvals with open positions, as unpausing the protocol may pose a risk of fund loss. Prisma Finance highlighted that 14 accounts have yet to revoke the affected smart contract, potentially resulting in a cumulative loss of $540,000.
Prisma Finance remains committed to mitigating future risks by implementing continuous auditing services, bug bounty programs, and security enhancements.
In a bid to prevent similar incidents, non-fungible token (NFT) game Munchables has devised a plan involving onboard investment firm Manifold Trading, market maker Selini Capital, and blockchain investigator ZachXBT as new multisig signers. This initiative aims to ensure the secure return of users’ funds. Additionally, ETH and future MUNCH donations will be allocated to individuals involved in the recovery process, prioritizing user safety.
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