Davis controlled the match from beginning to end with a brilliant grappling display, finally finishing Prado with an anaconda choke submission.
The finish came at 4:29 of the second round.
Prado had just finished fighting off an arm triangle when the end came. Davis quickly latched on to the hold and added a gator roll. He barely completed the roll when Prado tapped.
"It's one of my high-percentage moves," he said. "I didn't even get the chance to fully lock it in, but it worked."
Davis took Prado down repeatedly throughout the fight, scoring with body shots and strikes to the head. Prado continually tried to work his way up, but couldn't keep the fight standing for any period of time.
Davis had a dominant first, taking Prado down three times. Prado repeatedly grabbed the fence either trying to stop the takedown or get back to his feet, but despite numerous warnings, he didn't have a point deducted. Still, it was an easy round for Davis, who landed several hard ground strikes throughout.
It was Davis' first win since March 2011, as he improved to 10-1 with 1 no contest.
Prado suffered his first pro defeat, dropping to 8-1 with 1 no contest.