Mirror Protocol (Terra) was mined for 2 million dollars and could be fully mined in a few hours
Mirror Protocol has been mined for over $2 million, with several pools exhausted. An attacker can withdraw the rest of the pools when trading before the stock market starts on the morning of May 31.
What is the problem with Mirror Protocol?
Mirror Protocol, a DeFi application on the Terra blockchain, has suffered another exploit. To date, over $2 million has been made, and if the bug is not fixed by 4:00 a.m. on May 31, all of its crypto-asset pools will be at risk.
The Mirror protocol allows users to take long or short positions on technology stocks using synthetic assets. It was built on Terra, which collapsed earlier this month after its main stablecoin depreciated against the US dollar, pulling with it its token Luna (the blockchain has now been revived under the name Terra 2.0, while the original series existed as Terra Classic).
The exploit was discovered by a Terra community member and analyst named “FatMan”. He was one of the most vocal opponents of the recent Terra blockchain launch event.
Security firm BlockSec corroborated the community member’s findings by analyzing specific mining transactions. BlockSec confirms that a mining has indeed taken place.
The problem seems to be related to the protocol’s prophecy. Oracle is how a protocol collects data, including from the real world. In this case, the oracles get data related to stock prices and certain cryptocurrencies.
Validators running nodes on the Terra Classic chain are running an outdated version of the prediction price. This causes the Mirror protocol to incorrectly determine the value of LUNC.
A pricing error for Luna Classic (LUNC) made mining possible. The rest of the validators on Terra Classic have reported that the price of LUNC ($0.000122) is the same as the newly launched LUNA ($9.32) although their actual market price is very different.
Chainlink Community Ambassador ‘ChainLinkGod’ explained on May 31 that “Terra Classic Validator is running an outdated version of oracle software”.
The attack has been going on for the past few days – but so far it has not affected the majority of crypto stocks as the stock market is closed for the weekend and for Memorial Day in the US.
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