Prisma Finance is planning to resume the Prisma protocol with the assistance of the DAO after it was paused following a hacking incident that resulted in the loss of $11.6 million. Before enabling borrowing on the platform, an agreement must be reached through an ongoing vote.
Recently, a proposal was made by core contributor Frank Olson to safely unpause the Prisma protocol and allow users to deposit liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) while borrowing overcollateralized stablecoins.
The Prisma DAO initiated a governance vote that will run for four days and end on April 7. Olson emphasized the importance of unpausing the protocol to recover and reinstate normal operations, including complete Vault management and deposits into the Stability Pool.
Presently, the proposal to reactivate borrowing on Prisma has garnered unanimous "Yes" votes from participating DAO members, indicating substantial community backing. However, the final decision will be determined after the voting period concludes.
It is essential for users to revoke delegate approvals tied to open positions since unpausing the protocol could lead to fund losses. Despite efforts to alert affected accounts, some users have yet to withdraw from the impacted smart contract, putting $540,000 at risk.
Olson highlighted ongoing measures to mitigate future risks at Prisma, such as enlisting continuous auditing services, bug bounty programs, and enhancing security protocols.
In a related development, the NFT game Munchables took steps to prevent a recurrence of a recent incident where approximately $63 million was lost and recovered due to actions by an unauthorized developer. To enhance safeguards and ensure user fund security, the company is engaging investment firm Manifold Trading, market maker Selini Capital, and blockchain expert ZachXBT as additional multisig signers.
Moreover, Munchables plans to allocate ETH and future MUNCH donations to individuals who played a role in the recovery process to safeguard user interests.
