Is Prisma Finance Safe?
Risk Grade: C+ (41/100)
Prisma Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — proven exploit history and persistent stablecoin peg pressure make this a higher-risk place to borrow
A stablecoin protocol where you deposit liquid staking tokens (like stETH) and borrow mkUSD against them. It holds $50M in deposits. Its C grade is driven by a $12M hack in March 2024 where attackers exploited a migration tool, plus the persistent problem of mkUSD losing its dollar peg when crypto prices rise.
TVL
$50M
Mechanisms
7
Interactions
6
Value Grade
D
Key Risks for Prisma Finance Users
Already hacked for $12M in March 2024 -- attackers used a flaw in the migration tool to drain collateral from other users' accounts
In bull markets, people borrow mkUSD and immediately sell it, pushing its price below $1. If the market then reverses, mass liquidations follow
Convex and Yearn control outsized governance power, meaning a few large players decide the rules instead of the broader community
Top Risk Factors
- •Major $12M exploit (March 2024) via MigrateTroveZap input validation failure demonstrates prior security gaps
- •CDP stablecoins face persistent sell pressure in bull markets as vault owners mint and sell mkUSD
- •Multi-LST collateral types create correlated depeg risk across all supported liquid staking tokens
Risk Score Breakdown
Prisma Finance's highest risk area is Track Record (12/15). Here's how each dimension contributes to the overall 41/100 score:
Read the Full Prisma Finance Risk Report
This protocol has 2 collapse scenarios. 1 critical and 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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