Terra's Mirror Protocol Suffers Another $2M Exploit

Terra's Mirror Protocol Suffers Another $2M Exploit

Mirror Protocol, a DeFi application built on the Terra LUNA/USD blockchain, has seen $2 million in user funds drained over the weekend thanks to a pricing error.

What Happened: According to a May 29 alert from Mirroruser on the protocol’s community forum, the Mirror Protocol suffered an exploit on its mBTC, mDOT, mETH, and mGLXY synthetic asset pools.

The Mirror Protocol enables users to trade synthetic versions of stocks like Tesla Inc  TSLA and Apple Inc AAPL and cryptocurrencies on the Ethereum ETH/USD, BNB Chain BNB/USD  Terra Classic and Terra blockchains.

“A bug in the pricing oracle is telling the system that LUNC is worth around 5 UST when it's actually under a microcent,” Terra researcher FatMan explained on Twitter.

“For $1k in LUNC, an attacker can now load up on $1.3m in collateral but can pull out real assets by borrowing.”

On Sunday, The Block reported that a $90 million exploit from October 2021 was discovered on Mirror. The exploit went completely unnoticed for a period of seven months, despite an abundance of on-chain data confirming the event.

Price Action: According to data from Benzinga Pro, LUNA was trading at $9.04 at press time, up 40% over the last 24 hours.

Posted In: BlockchainDeFiEthereumMirror ProtocolMirroruserCryptocurrencyNewsMarkets

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