Prisma Finance Responds to Security Breach with $11.6 Million Loss
Discover how Prisma Finance is addressing a recent security breach that resulted in an $11.6 million loss, focusing on recovery efforts. Core contributor “Frank” has outlined immediate responses and upcoming strategies following the hack, with $540,000 of the exploited funds still vulnerable.
Prisma Finance’s Recovery Proposal
Learn about the proposed recovery strategies by Prisma Finance to combat the recent exploit:
- Significantly reducing the protocol owned liquidity (POL) from $40k to $0 weekly.
- Cutting the weekly distribution amount to vePRISMA holders in half, from $160k to $80k.
- Emphasizing that these changes are temporary and subject to revision based on new information.
Security Breach Details Involving FixedFloat Exchange
Get insights into the security breach at Prisma Finance, where perpetrators exploited a vulnerability in the migration zap contract, resulting in an $11.6 million loss. The breach involved the misuse of the contract meant for trove manager transitions to extract assets such as wrapped staked Ethereum (wstETH), swiftly converting them to ETH.
- Assurance that the core functionality of Prisma Finance remains intact, with the issue isolated to the migration zap contract.
- Implementation of an emergency pause on all trove managers to cease borrowing activities and stabilize the situation.
Hot Take: Prisma Finance’s Swift Recovery Actions Post-Breach
Revealing the proactive approach taken by Prisma Finance following a substantial security breach, ensuring transparency, and implementing strategic measures for recovery.
By
By
By
By
By
By