Prisma Finance has outlined a thorough plan to reinstate its Prisma protocol, which was suspended on March 28 owing to a security incident that resulted in a loss of $11.6 million.
In reaction to the disaster, Frank Olson, a major player at Prisma Finance, provided a way to “safely” restart the protocol. This strategy entails permitting users to deposit liquid staking tokens (LSTs) and liquid restaking tokens (LRTs), as well as reactivating the borrowing facility for overcollateralized stablecoins.
Following the suggestion, the Prisma Finance DAO had a four-day governance vote, which ended on April 7. Olson said that the idea has received unanimous support from the DAO’s voting members thus far, demonstrating strong support for resuming borrowing services.
The protocol has recognized ongoing concerns, noting that 14 accounts have yet to withdraw from the compromised smart contract, potentially resulting in additional losses of up to $540,000. In an effort to strengthen its security procedures, Prisma is implementing continuous auditing services, improving bug reward programs, and deploying other security updates.
So far, the unanimous voting outcome demonstrates the community’s trust in Prisma Finance’s remediation strategies and commitment to secure the platform against future vulnerabilities.
