Prisma Finance is up against the siphoning of $12 million

Prisma Finance, a DeFi protocol that releases stablecoins supported by Ethereum liquid staking and re-staking tokens (LRTs), loses $12 million through a cyber attack.

Initially noticed by Cyvers, a company in the field of blockchain safety, the hackers were able to empty the amount of 3,258 ETH successfully. Following this blatant act, the team immediately initiated and paused the protocol. They then relayed a statement for users of Prisma to deny all consent regarding the impacted smart contracts.

In the meantime, per the analysis report from Peckshield, a security company, the assets siphoned off were disbursed to three Ethereum addresses.

Following the unfortunate incident, the PRISMA token belonging to the protocol saw a downward trend to the extent of 30%. However, after a certain period, some recoveries were made. It is presently trading at a $9 million market capitalization. Almost $110 million was taken out of the protocol during the attack. What ultimately remained was $127 million in total Value locked (TVL).

Prisma is releasing two-dollar pegged stablecoins, which are going by mkUSD and ULTRA. It is possible to mint them against Ethereum liquid staking tokens (LSTs) and re-staking tokens (LRTs). Its primary mkUSD comes with a market capitalization of $35 million. In the case of the newly released ULTRA, it reaches a figure of a little above $2 million.

The design of PRISMA is influenced by the release of LUSD, Liquidity, which clarified on X that it has its own safeguards in place against any similar attack.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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