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.
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
