Prisma Finance eyes protocol restart with DAO support

Users are advised to revoke the delegate approvals with open positions as unpausing the protocol may result in loss of funds
Users are advised to revoke the delegate approvals with open positions as unpausing the protocol may result in loss of funds

Prisma Finance has devised a plan to safely unpause the Prisma protocol, which was halted on March 28 after it suffered a hack of $11.6 million. Re-enabling borrowing on Prisma will require consensus through an ongoing vote.

On April 3, Prisma Finance core contributor Frank Olson proposed a way to “safely” unpause the Prisma protocol and re-enable the ability for users to deposit liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) and borrow overcollateralized stablecoins.

Source: Prisma Finance

The Prisma Finance DAO subsequently launched a four-day governance vote the next day, which will end on April 7. According to Olson:

“Unpausing the protocol is a critical part of the path to recovery and it will reestablish normal functionality, including complete Vault management and deposits into the Stability Pool.”

At the time of writing, the proposal for re-enabling borrowing on Prisma received 100% “Yes” votes from participating members of the decentralized autonomous organization (DAO), signaling strong community support for the cause. However, the decision will be finalized after the voting deadline.

Prisma Finance DAO’s proposal for unpausing the protocol following the $11.6 million hack. Source: snapshot.prismafinance.com

Users are advised to revoke the delegate approvals with open positions as unpausing the protocol may result in loss of funds.

The protocol previously said that 14 accounts were yet to revoke the affected smart contract, which could potentially result in a cumulative loss of $540,000.

Olson also noted Prisma’s ongoing effort to mitigate future risks, which involves opting for continuous auditing services, bug bounty programs and security improvements.

Related: Nearly $100M recovered from hacks in March — PeckShield

Nonfungible token (NFT) game Munchables recently devised a plan to avoid a situation it faced recently where it lost and recovered nearly $63 million from a rogue in-house developer.

Source: Munchables

One of the strategies involves onboarding investment firm Manifold Trading, market maker Selini Capital and blockchain investigator ZachXBT as new multisig signers to ensure the safe return of users’ funds.

“Finally, we will send ETH and future MUNCH donations to those who were involved in the recovery process of keeping our users safe,” the company said.

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