Prisma Finance Suspends Protocol Following Vulnerability, Safeguards Remaining Funds

Prisma Finance recently announced the suspension of its protocol due to a vulnerability that compromised several users' individual vaults. Despite this unfortunate occurrence, it assured its users that all remaining funds are safe, as issued a statement on social media platform X. Due to over-collateralization, the platform's stablecoins mkUSD and ULTRA are not at risk. As part of the response, Prisma Finance intends to perform a post-mortem of this incident and make determined efforts to recover the compromised funds. During this suspension, the platform urges its users to be mindful of potential phishing attempts. Communication about further developments and the steps taken to resolve the situation will continue through the company's official channels. Prisma Finance is known for developing innovative financial instruments, thereby creating more opportunities for those participating in the world of DeFi. However, like many DeFi platforms, it faces security challenges and is now working to resolve this most recent setback.