The protocol focused on the old Terra is the victim of a series of hacking attacks that put user funds in danger.
Mirror Protocol, a decentralized finance (Defi) protocol focused on the old Terra blockchain, now named Terra Classic, is under a hacking attack that puts millions of dollars in digital assets from users of the now-vanished ecosystem in danger.
According to a report brought by The Block, the hacking attack permitted malicious actors to steal at least $2 million so far. The hack got reported on Twitter by “FatMan,” who highlighted that if the vulnerability does not get fixed, all the tokenized asset pools will be in real danger.
Mirror under Hacking Attack
As The Block explains, the Mirror protocol gives users the possibility to go long or short tech stocks using synthetic currencies (or tokenized stocks). It works on the old Terra blockchain, now Terra Classic, which got replaced by a new one after the recent crash of its stablecoin TerraUSD (UST) and its parallel token LUNA, now named Luna Classic (LUNC).
Mirror Protocol also has versions of other digital assets, such as mBitcoin for Bitcoin, another currency seeking to reach the same price as the flagship cryptocurrency.
Many huge protocol pools got already emptied by now. According to the Mirror Protocol website, the tokenized asset pools of Bitcoin, Ether, and Polkadot got already depleted. The collection for the token representing Galaxy Digital shares has also got finished.
An Apparent Breach in the Oracles
FatMan told The Block that he analyzed various transactions to wrap up the attack, which, according to him, has generated losses registered at $2 million. The error appears to get triggered by an oracle. In this case, the prophets receive data linked to the price of shares and certain digital assets.
The Block expressed that the most significant issue is that most of the validators running nodes on the Terra Classic chain are running an old version of the price oracle. As a result, these nodes send the Mirror Protocol inaccurate data about the LUNC price.
FatMan urged to fix this problem as soon as possible, but he expressed despair in the social network because of the lack of answers from developers linked to this project. The protocol team in question has not made any further statements about this worrying situation.
By: Jenson Nuñez
