2022 – $90 million mirror Terra protocol hack went unnoticed by DailyCoin for seven months

Terra’s Mirror Protocol hack worth $90 million went unnoticed for seven months

The frequency of DeFi hacks has made it almost common in the cryptocurrency world. What is certainly unusual, however, is the $90 million worth of DeFi exploits that have gone unnoticed for seven months – and yet that’s the story of Mirror Protocol.

The $90 million hack goes unnoticed for seven months

Mirror Protocol is a decentralized on-chain application that enables the creation of digital synthetic data that tracks real-world asset prices.

On May 17, community members discovered a bug in the Mirror Protocol code that allowed the hacker to withdraw up to $90 million gradually starting from October 8, 2021.

According to a user using the alias “FatMan”, the flaw allowed the hacker to unlock other users’ collateral in the mirror’s history and pull it out for themselves.

The bug in the Mirror’s code has been exploited “hundreds of times” since 2021, allowing the hacker to suck $89,706,164.03 from the registry.

Data on the chain confirms that the hacker opened the terrestrial funds in the Mirror protocol multiple times in the same transaction, paying only about $17.54 for it.

Mirror Protocol suffers from another hack

A few days after the discovery, the DeFi protocol came under another attack on May 30.

According to reports, the recent hack was caused by a price oracle configuration error, which prompted the attacker to exploit a price mismatch between the old LUNC token and the new LUNA token.

The attack was made possible by the fact that Terra nodes were running ancient Oracle software. According to the Chainlink community member who discovered the attack, the hacker drained more than $2 million from the registry.

on the flip side

  • The flaw was quietly fixed by the developers of the Mirror protocol on May 9, without any official notification to the community that the code had been exploited.

Why should you care

While this is certainly not the first DeFi exploit in history, it is by far the longest it has taken to report. The pressure on Terra continues to mount.

To understand how DeFi works, read:

Introduction to Decentralized Finance (DeFi): A Comprehensive Guide

To see how Terra performs, check out the following:

Terra (LUNA) tanks 70% just hours after the start of Terra 2.0 mainnet

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