Prisma Finance Develops Plan to Safely Restart Protocol After $11.6M Hack; Munchables Prevents Future Losses; Google Fights Scammers
Summary:
Prisma Finance is developing a secure method to restart the Prisma protocol, which was halted due to an $11.6 million hack. A four-day governance vote was initiated to decide on the proposal of reactivating borrowing on Prisma. Users are advised to withdraw delegate permissions to avoid potential loss under the protocol restart. Continuous efforts are underway to mitigate future risks. Meanwhile, the non-fungible token game, Munchables, has formulated strategies to prevent a repeat of losses incurred through in-house developer fraud. Google has sued crypto app fraudsters and Crypto.com is expanding into Korea.
Prisma Finance has developed a method to securely restart the Prisma protocol, which was frozen after an $11.6 million hack on 28th March. A collection of votes will determine the path towards reactivating borrowing on Prisma. On April 3rd, Frank Olson, a chief contributor to Prisma Finance, put forth a proposal for a "safe" reboot of the Prisma protocol, thereby restoring the facility for users to deposit Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs) and to take loans against overcollateralized stablecoins.
Following this announcement, a four-day governance vote was initiated by Prisma DAO the next day, which is slated to conclude on April 7th. Olson says that restarting the protocol is a key step towards recovery, as it restores full Vault management and Stability Pool deposit functions. As of now, the plan to reactivate borrowing on Prisma has attained unanimous approval from the participating DAO members, indicating robust community backing for the action. The final decision, however, will be taken after the vote deadline.
In light of the protocol restart, users are instructed to withdraw delegate permissions with open positions to prevent potential fund losses. Previously, 14 accounts were identified which have yet to rescind the compromised smart contract, potentially incurring a total loss of $540,000. Prisma’s continuous efforts to prevent future vulnerabilities are highlighted by Olson, to be achieved through continuous auditing services, bounty programs for bug detection and enhanced security features.
Similar to Prisma, the non-fungible token (NFT) game, Munchables recently formulated a strategy to evade repeating a past scenario where a rogue in-house developer caused a loss and subsequent recovery of almost $63 million.
One of the preventive measures involves bringing on board Manifold Trading, Selini Capital and blockchain sleuth ZachXBT as new multi-signature signatories to guarantee the safe retrieval of user funds. The company further announced, "We'll convey ETH and future MUNCH donations to all those who assisted in the security recovery process."
Google recently levied a lawsuit against crypt app fraudsters and Crypto.com is extending its operations to Korea.
Published At
4/5/2024 11:08:02 AM
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