Terra’s Mirror Protocol Allegedly Suffers New Exploit

Community users are raising the alarm about a possible bug in the LUNC pricing oracles.

AccessTimeIconMay 30, 2022 at 10:14 p.m. UTC
Updated May 11, 2023 at 6:55 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Author placeholder image

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

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.

Read more about