Prisma FinanceMicro-cap

Prisma Finance receives a C+ risk grade (41/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for Prisma Finance are: (1) Already hacked for $12M in March 2024 -- attackers used a flaw in the migration tool to drain collateral from other users' accounts (2) In bull markets, people borrow mkUSD and immediately sell it, pushing its price below $1. If the market then reverses, mass liquidations follow (3) Convex and Yearn control outsized governance power, meaning a few large players decide the rules instead of the broader community

Prisma Finance scores 41/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 11/20, Oracle Surface: 3/10, Documentation Gaps: 3/10, Track Record: 12/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 5/10. The highest risk area is Track Record at 12/15.

Among 28 rated Stablecoin protocols on Hindenrank, Prisma Finance ranks #16 by safety (lowest risk score = safest). Its 41/100 risk score and C+ grade place it in the middle tier of Stablecoin protocols.

Prisma Finance scores 12/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.