Prisma Finance, a decentralized finance (DeFi) protocol specializing in stablecoins backed by Ethereum liquid staking and re-staking tokens (LRTs), experiences a cyber attack resulting in a loss of $12 million. Initially detected by Cyvers, a blockchain security firm, the attackers successfully drained 3,258 ETH. In response, Prisma's team swiftly halted the protocol and advised users to disclaim consent for affected smart contracts.

According to an analysis by Peckshield, the stolen assets were distributed among three Ethereum addresses. Following the incident, the PRISMA token's value plummeted by 30%, though some recovery occurred later, with the token currently holding a market capitalization of $9 million. The attack led to an outflow of nearly $110 million from the protocol, leaving $127 million in total value locked (TVL).

Prisma issues two dollar-pegged stablecoins, mkUSD and ULTRA, mintable against Ethereum liquid staking tokens (LSTs) and re-staking tokens (LRTs). mkUSD boasts a market capitalization of $35 million, while ULTRA, a newly launched stablecoin, stands at just over $2 million.

Prisma's design is influenced by LUSD, Liquidity's release, which recently emphasized its own security measures against similar attacks.