key takeaways
- Mirror Protocol has halted an exploit that started yesterday and caused approximately $2 million in losses.
- There are some affected assets of Project Inefficient so as to prevent further exhaustion of funds.
- It could be minutes after the Mirror Protocol collapse, as the pools could be empty when the market opens today.
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Terra’s Mirror Protocol has resolved an ongoing exploit that caused the network to lose more than $2 million yesterday.
Mirror protocol disables the affected pool
The attack on Mirror Protocol began yesterday, May 30, as poor prices allowed attackers to extort funds.
The issue arose from the fact that those oracles mismatched the prices of Tera (LUNA) and Terra Classic (LUNC), allowing the attacker to obtain more valuable assets cheaply and other assets used by the Mirror Protocol. Opportunity to swap.
FatMan Terra Community Member wrote on twitter That problem is now resolved, as Mirror Protocol has disabled MBTC, METH, MDOT and MGLXY as collateral options. Those funds were originally targeted by the attacker during the original exploit.
“The attacker can no longer use his illicit funds to clear the rest of the pools,” he posted this morning.
the project was close to collapse
It looks like the Mirror Protocol was very close to collapsing as a result of exploitation and money lost in the process.
Another user, ReismanZoom, wrote that the affected asset was available at a 97% discount this morning. This meant that Mirror Protocol’s pool could be rapidly emptied of funds when the US market opened today.
“Mirror Protocol” [is] Dying today,” Reisman Zoom wrote on Discord. “Mirror protocol is being exploited unless they suspend MBTC, METH, MDOT and MGLXY from being used as collateral for mining within the next 25 minutes.”
Shortly before the issue was resolved, Fatman wrote that there were only 16 minutes left before the protocol died. This suggests that the Mirror Protocol was indeed close to failing.
This is the second recent attack on the Mirror Protocol. Another attack from October 2021 went unnoticed until last week, when it was found that the protocol cost $90 million.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.