You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Prisma Finance Works Toward Exploit Recovery, $540K Vulnerable

Prisma Finance is currently addressing a recent security breach resulting in an $11.6 million loss, emphasizing their efforts towards recovery.

In a forum post attributed to core contributor “Frank,” Prisma Finance, a decentralized finance (DeFi) protocol, has detailed its prompt response and future actions in light of the hack. Frank highlighted that $540,000 of the compromised funds remain exposed.

“Among the impacted Troves, a number have nullified the contract housing the vulnerability, leaving approximately $540k of collateral still susceptible as of the time of writing,” Frank explained.

Prisma Finance’s Proposal

In response to the exploit, a key aspect of the strategy involves a significant reduction in protocol owned liquidity (POL). This reduction entails slashing the weekly POL amount from $40k to $0.

Another measure aims to adjust the distribution to stakeholders. Frank elaborated on the decision to halve the weekly amount allocated to vePRISMA holders. “We propose to reduce the weekly amount distributed to vePRISMA holders by half, from $160k to $80k,” he highlighted.

Frank emphasized that these proposed changes are not permanent but crucial for the current situation. “As we receive new information about this situation, we are committed to revisiting these parameter adjustments one week after their implementation,” he affirmed.

$11.6 Million Hack Involving FixedFloat Exchange

The breach at Prisma Finance exploited a vulnerability in the migration zap contract, resulting in a loss of approximately $11.6 million.

Originally designed for facilitating transitions between trove managers, this contract was manipulated to siphon off assets, including wrapped staked Ethereum (wstETH). The stolen assets were promptly converted to Ethereum (ETH), complicating efforts to trace and recover them.

It was emphasized that the core functionality of Prisma Finance remains intact. The breach was isolated to the migration zap contract, thus not compromising the entire protocol.

In response to the incident, Prisma Finance implemented an emergency pause on all trove managers. This measure has suspended all borrowing activities and prevented new liquidity from entering the protocol, with the aim of stabilizing the situation.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

Indonesian President Cautions Against Crypto in Money Laundering Risks
24.04.2024By
Coinbase Set to Launch $15 million Ad Campaign During NBA Playoffs: Report
24.04.2024By
Pharrell Williams And Louis Vuitton Launch NFT-Linked Jacket To VIA Holders
24.04.2024By

Latest news

Indonesian President Cautions Against Crypto in Money Laundering Risks
24.04.2024
Coinbase Set to Launch $15 million Ad Campaign During NBA Playoffs: Report
24.04.2024
Pharrell Williams And Louis Vuitton Launch NFT-Linked Jacket To VIA Holders
24.04.2024
SEC Delays Decision on Franklin Templeton’s Spot Ethereum ETF Application
24.04.2024
Hackers Expose Code Of El Salvador’s Bitcoin Wallet App Chivo
24.04.2024
Jack Dorsey’s Block Expands Bitcoin Mining Ambitions, Develops 3nm Mining Chip
24.04.2024
South Africa’s FSCA Confirms Licenses to 75 Crypto Service Providers
23.04.2024
Binance Lawsuit in Canada Following Securities Law Violation Allegations
23.04.2024
Velvet Capital, Backed by Binance Labs, Temporarily Offline Due to Phishing Attack Risk
23.04.2024
Square Enix Is Developing Its Ethereum NFT Game Symbiogenesis With Animoca Brands
23.04.2024