Ethereum

Prisma Finance

Reported by The Defiant, Prisma Finance, a DeFi protocol that issues stablecoins backed by Ethereum liquid staking and restaking tokens (LRTs), has been exploited for nearly $12 million.
First flagged by blockchain security firm Cyvers, attackers managed to make off with 3,258 ETH before the protocol was <a rel="noopener noreferrer nofollow" target="_blank" href="https://twitter.com/PrismaFi/status/1773371030129524957">paused</a> by the team. Prisma users are advised to revoke approvals for the affected smart contracts.
The stolen assets have since been <a rel="noopener noreferrer nofollow" target="_blank" href="https://twitter.com/PeckShieldAlert/status/1773348477398900804">redistributed</a> to three Ethereum addresses, according to an analysis from security firm Peckshield.
The protocol’s PRISMA token crashed 30% after the exploit but has since recovered some losses. It currently trades at a $9 million market capitalization. Nearly $110 million was withdrawn from the protocol in the wake of the exploit, leaving it with $127 million in total value locked (TVL).
Prisma issues two dollar-pegged stablecoins, mkUSD and ULTRA, which can be minted against Ethereum liquid staking tokens (LSTs) and restaking tokens (LRTs), respectively. Its flagship mkUSD has a market capitalization of $35 million, while the newer ULTRA stands at just over $2 million.
Prisma’s design is based on that of LUSD issuer <a rel="noopener noreferrer nofollow" target="_blank" href="https://thedefiant.io/liquity-to-launch-new-cdp-stablecoin-protocol-in-late-2024">Liquity</a>, which <a rel="noopener noreferrer nofollow" target="_blank" href="https://twitter.com/LiquityProtocol/status/1773359489401413734">confirmed</a> on X that it is not susceptible to the same type of exploit.

Prisma Finance Exploited for $12M

TokenInsight

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