Market Analysis

Mirror Protocol Currently Suffering Exploit

Mirror is currently under attack and may have already lost as much as $2 million.

Key Takeaways

  • Mirror Protocol is currently suffering its second exploit.
  • An error in price oracle implementation has allegedly allowed up to $2 million to be siphoned from the protocol.
  • The situation is ongoing.

Mirror Protocol appears to be under attack and may have already lost as much as $2 million. 

Second Exploit News In A Week

Just days after the discovery that Mirror had been exploited for almost $90 million seven months ago, it appears the protocol is suffering another attack. The attacker is apparently taking advantage of the fact that price oracles are mismatching the old LUNC token with the new LUNA token.

News of the exploit was delivered by a Mirror community member, who posted about it in the Mirror community forum, and then quickly circulated by Twitter user FatMan, who discovered the previous Mirror exploit four days ago.

According to FatMan, the hack was possible due to an error in the configuration of price oracles. This was confirmed by Chainlink community member ChainLinkGod, who said oracles are currently “reporting the price of the new Terra 2.0 $LUNA coin (~$9.80) instead of the original Terra Classic $LUNC coin (~$0.0001)”.

FatMan estimates the exploit has already cost Mirror Protocol around $2 million, though as of yet Crypto Briefing has not been able to independently confirm it. It is apparent however that mBTC, mETH, mDOT, and mGLXY pools have been drained of their liquidity.

FatMan and other crypto users have been pleading with the Mirror developers for a call to action before the rest of the mAsset pools, such as mAAPL and mAMZN, are also drained.

Mirror Protocol is a decentralized application that allows for the creation of digital synthetics that track the price of real world assets, such as stocks. Mirror’s core contracts were deployed on Terra Classic, but its assets are available on Ethereum and Binance Smart Chain (BSC). It has previously suffered a $90 million hack which was only discovered seven months after the fact.

This is a developing story. 

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies. 

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