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PrismaFi

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[AI-DRAFTED · AWAITING VERIFICATION]

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Summary

Prisma Finance was an Ethereum-based collateralized debt position (CDP) protocol that issued stablecoins (mkUSD and ULTRA) backed by liquid staking and restaking tokens (LRTs/LSTs). On March 28, 2024, a critical input validation flaw in the MigrateTroveZap contract was exploited via flash loan, resulting in the theft of approximately 3,479 ETH (~$12 million) from user vaults. Following the exploit, the core team effectively abandoned the protocol, which was subsequently shut down via DAO governance (PIP-46) and succeeded by Resupply Finance.

Connected Entities

1 entities
Protocols
⌂PrismaFi
Relationships
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    Timeline(15 events)

    2023

    Prisma Finance launched on Ethereum mainnet as an LRT/LST-backed CDP stablecoin protocol, issuing mkUSD and ULTRA.

    March 2024

    Prisma Finance announced a system upgrade requiring users to migrate Trove positions to new TroveManager contracts; MigrateTroveZap contract deployed.

    28 March 2024

    At approximately 11:25 UTC, the primary attacker exploited a critical input validation flaw in the MigrateTroveZap contract using a flash loan, stealing approximately 3,479 ETH (~$12 million) from 25 victim wallets across three exploiter addresses.

    28 March 2024

    At 12:51 UTC, Prisma Finance's emergency multisig paused the protocol. TVL dropped ~40% from $236 million to $143 million. PRISMA token fell over 25%.

    28 March 2024

    The primary attacker posted an on-chain message claiming 'this is a white hat rescue' and requested contact information to arrange a refund.

    28 March 2024

    Prisma Finance directed the attacker to negotiations@prismafinance.com via on-chain message.

    29 March 2024

    The attacker publicly demanded a live public apology from the development team and insisted developers reveal their real identities as conditions for fund return discussions.

    29 March 2024

    Blockchain security firm Cyvers observed the attacker beginning to swap stolen funds to ETH; PeckShield reported approximately 200 ETH transferred to OFAC-sanctioned mixer Tornado Cash.

    29 March 2024

    A further 740 ETH reportedly transferred to a Tornado Cash-associated address, bringing total funds sent to mixers to over $2.5 million.

    3 April 2024

    Core contributor Frank Olson published a proposal (later PIP-035) to safely restart the Prisma protocol, including re-enabling LST/LRT deposits and stablecoin borrowing.

    5 April 2024

    The DAO voted 100% in favor of the protocol restart proposal.

    7 April 2024

    Prisma Finance announced resumption of operations with limited functionality restored.

    December 2024

    Resupply Finance launched as the successor protocol, issuing reUSD backed by crvUSD and frxUSD, with RSUP as its governance token.

    2 January 2025

    New PRISMA token emissions ceased. DAO proposal PIP-46 formally confirmed the shutdown of Prisma Finance and transition to Resupply Finance.

    2025

    Decommissioning of Prisma Finance completed by the Resupply team; less than $80,000 in debt remained, with mkUSD backed 1:1 by crvUSD via Peg Stability Modules.

    Provenance & Audit Trail
    Anchored on SolanaVerify on-chain

    Decision Log

    This investigation is cryptographically anchored to the Solana blockchain (1 event). 0 of 21 cited source URLs have an Internet Archive snapshot.

    full audit log →version history →

    model: claude-sonnet-4-6

    generated: 5/30/2026, 6:33:15 PM

    last updated: 8/29/2026, 1:33:58 AM

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