Prisma Finance Suffers $12 Million Exploit

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 paused by the team. Prisma users are advised to revoke approvals for the affected smart contracts.

The stolen assets have since been redistributed 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 Nearly $110 million was withdrawn from the protocol in the wake of the exploit, leaving it with $127 million in total value locked (TVL).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 Liquity, which confirmed on X that it is not susceptible to the same type of exploit.