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Prisma Finance Protocol Paused After Exploit: $12M in wstETH Stolen

Prisma Finance protocol faces setback as $12M in wstETH is exploited. Emergency measures enacted; post-mortem analysis planned for fund recovery.

  • Exploitation of Prisma Finance protocol results in the theft of nearly $12 million worth of Wrapped Staked Ether (wstETH).
  • The attacker utilized flash loan transactions to acquire 2,821.3 wstETH, exchanging it for approximately 3,257.69 Ether (ETH).
  • Prisma’s emergency measures include pausing the protocol and ensuring the safety of remaining funds, while urging vault owners to disable delegate approval.
  • Plans for post-mortem analysis and efforts to recover stolen funds are underway.

Prisma Finance, a DeFi protocol, faced a significant setback on March 28, as an exploit resulted in the loss of nearly $12 million in Wrapped Staked Ether (wstETH). CertiK’s investigation revealed that the perpetrator orchestrated the attack through a series of flash loan transactions, acquiring 2,821.3 wstETH and swiftly exchanging it for approximately 3,257.69 Ether (ETH).

In response to the breach, Prisma Finance swiftly activated its emergency multi-signature wallet to pause the protocol, ensuring the security of remaining funds. Additionally, the protocol’s team advises vault owners to disable delegate approval to its smart contracts, enhancing security measures in light of the exploit. Despite the substantial loss, assurances were provided regarding the overcollateralization and safety of mkUSD and ULTRA stablecoins within the protocol.

Following the breach, Prisma Finance is focused on two primary objectives: conducting a comprehensive post-mortem analysis to understand the exploit’s intricacies and initiating efforts to retrieve the stolen funds. These measures aim to strengthen the protocol’s resilience and restore confidence among its user base.

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