Terra’s Mirror Protocol Allegedly Suffers New Exploit
Community users are raising the alarm about a possible bug in the LUNC pricing oracles.
Decentralized finance (DeFi) application Mirror Protocol, which is built on Terra, is allegedly suffering another exploit, according to pseudonymous “Mirroruser,” who posted on the Terra Research Forum on May 28. It was amplified on Twitter by “@FatManTerra” Monday afternoon.
According to FatMan, who has been providing commentary on the Terra research forum for the past few weeks, the latest exploit has allegedly drained over $2 million, with the potential for more, due to a bug in the LUNC pricing oracle.
By his account, the buggy oracle is threatening to drain all liquidity pools on Mirror.
Last week, FatMan pointed to previous attacks around the Mirror Protocol.
The Mirror Protocol is a DeFi platform that allows users to create and trade “mirrored assets,” or mAssets, that “mirror” the price of stocks – including major stocks traded on U.S. exchanges.
In October 2021, Mirror Protocol succumbed to a $90 million exploit on the old Terra blockchain, which went unnoticed until last week, The Block reported Monday.
Over the weekend, Terra’s new blockchain was launched, which included an airdrop of new LUNA tokens to users as part of a broader plan to revive the ecosystem, developers confirmed Friday.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.