Mirror Protocol Halts Exploit After $2M Lost

Mirror Protocol Disables Affected Swimming Pools

Mirror Protocol was attacked yesterday, May 30th. An attack by attackers on Mirror Protocol started when malfunctioning price oracles enabled them to drain funds.

This issue was caused by the mismatch in Tera (LUNA), Terra Classic (LUNC), prices. This gave the attacker the opportunity to purchase the more valuable asset cheaply and trade it for other assets that Mirror Protocol uses.

Terra community member FatMan wrote on Twitter Mirror Protocol has removed mBTC, METH and mDOT as collateral options from the Mirror Protocol. Those funds were initially targeted by the attacker in the original exploit.

“The attacker can no longer use his ill-gotten endowment to drain the rest of the pools,” he posted this morning.

Project Close to Collapse

Mirror Protocol seemed very close to collapse due to the exploit and the loss of funds.

Rizman zoom, another user, wrote that affected assets were currently available at a 97% Discount this morning. This meant that Mirror Protocol’s pools could have been rapidly emptied of funds when U.S. markets opened today.

“Mirror Protocol [is] dying today,” Rizman Zoom wrote on Discord. “Unless they suspend mBTC, mETH, mDOT and mGLXY from being used as collateral for minting within the next 25 minutes or so, Mirror Protocol is being exploited to death.”

FatMan wrote just 16 minutes before the protocol was killed, shortly after the issue had been resolved. Mirror Protocol was in danger of failing.

This is the second attack on Mirror Protocol. Another attack in October 2021 went unnoticed up until last week. It cost the protocol $90 millions.

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