{"id":455319,"date":"2022-05-31T05:04:48","date_gmt":"2022-05-31T02:04:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/luna-classic-lunc-pricing-error-leads-to-mirror-protocol-exploit\/"},"modified":"2022-05-31T05:04:48","modified_gmt":"2022-05-31T02:04:48","slug":"luna-classic-lunc-pricing-error-leads-to-mirror-protocol-exploit","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/luna-classic-lunc-pricing-error-leads-to-mirror-protocol-exploit\/","title":{"rendered":"# Luna Classic (LUNC) pricing error leads to Mirror Protocol exploit"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e5f6843410\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e5f6843410\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/luna-classic-lunc-pricing-error-leads-to-mirror-protocol-exploit\/#%E2%80%9D_Luna_Classic_LUNC_pricing_error_leads_to_Mirror_Protocol_exploit_%E2%80%9C\" >&#8221; Luna Classic (LUNC) pricing error leads to Mirror Protocol exploit &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Luna_Classic_LUNC_pricing_error_leads_to_Mirror_Protocol_exploit_%E2%80%9C\"><\/span>&#8221; Luna Classic (LUNC) pricing error leads to Mirror Protocol exploit &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvODllMGE1ODgtMWM3OC00NGJhLTgxZDctMjZkYzgzNDI4YzdjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>A mismatch in the reported price of underlying assets on synthetic assets DeFi platform Mirror Protocol has caused an ongoing exploit that has the potential to drain all of its funds.<\/p>\n<p>The exploit was observed on May 29 by governance <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forum.mirror.finance\/t\/another-exploit\/3511\">participant<\/a> \u2018Mirroruser\u2019 on the protocol\u2019s forum. As of the time of writing, the mBTC, mDOT, mETH, and mGLXY synthetic asset pools on the protocol have lost almost all of their assets valued at over $2 million.<\/p>\n<p>Mirror allows trading of synthetic assets, such as stocks and cryptocurrency on the Terra and Terra Classic layer-1 blockchains, BNB Chain (BNB), and Ethereum (ETH).<\/p>\n<p>A pricing error for Luna Classic (LUNC) made the exploit possible. The remaining validators on Terra Classic reported that the price of LUNC ($0.000122) was the same as the newly launched LUNA ($9.32) even though their real market prices vary wildly according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/terra\">CoinGecko<\/a>. <\/p>\n<p>Chainlink community ambassador \u2018ChainLinkGod\u2019 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ChainLinkGod\/status\/1531384785897025537\">explained<\/a> on May 31 that the \u201cTerra Classic validators were running an outdated version of the oracle software.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mirror_protocol?ref_src=twsrc%5Etfw\">@mirror_protocol<\/a> has just been exploited again due to Terra Classic validators reporting the price of the new Terra 2.0 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24LUNA&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$LUNA<\/a> coin (~$9.80) instead of the original Terra Classic <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24LUNC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$LUNC<\/a> coin (~$0.0001)<\/p>\n<p>This is a massive operations failure<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/hO0M0UFBYq\">https:\/\/t.co\/hO0M0UFBYq<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/ygbr3ij4iS\">https:\/\/t.co\/ygbr3ij4iS<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/PO0huxX8oQ\">pic.twitter.com\/PO0huxX8oQ<\/a><\/p>\n<p>\u2014 ChainLinkGod.eth (@ChainLinkGod) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ChainLinkGod\/status\/1531384782046711808?ref_src=twsrc%5Etfw\">May 30, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nVenus Protocol and Blizz Finance each suffered from a similar exploit in May when price oracle Chainlink\u2019s reported LUNA price remained at $0.10 while the market price ran far below that. Blizz Finance was entirely drained while Venus lost $11.2 million.<\/p>\n<p>Terra community whistleblower on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, pseudonymous \u2018FatMan\u2019, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FatManTerra\/status\/1531365991955013632\">warned<\/a> that the Mirror exploit will affect the other \u2018m\u2019 asset pools by about 8:00am UTC on May 31. However, the account also claims that most of the pools can be saved if the developers intervene to fix the bug.<\/p>\n<p>By 12:55am UTC, it <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/terra.stake.id\/#\/\">appeared<\/a> that the pricing error had been fixed for LUNC, as the price being verified by the oracle has returned to its real market value.<\/p>\n<p>This is the second time Mirror has suffered from a major vulnerability. The previous bug in Mirror\u2019s code was exploited \u201chundreds of times\u201d since 2021 according to FatMan in a May 27 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/FatManTerra\/status\/1529978954030977024\">tweet<\/a>. The first exploit allowed a user to unlock other users\u2019 collateral on the protocol and pull it out themselves. In all, the first exploiter got away with \u201cwell over $30 million\u201d and was not noticed until May 2022, he added.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Korean watchdog begins risk assessment of crypto as Terra 2.0 passes vote<\/em><\/strong><\/p>\n<p>On May 28, the Terra ecosystem was relaunched when Terra 2.0 went online as per founder Do Kwon\u2019s plans. Terra 2.0 is a fork of the now-named Terra Classic blockchain. LUNA tokens are being airdropped to investors who held the previous version of LUNA and the TerraUSD (UST) stablecoin during the catastrophic collapse of the Terra ecosystem earlier this month.<\/p>\n<p>Mirror Protocol (MIR) tokens are currently down 2% in the past 24 hours and are trading at $0.31 according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/mirror-protocol\">CoinGecko<\/a>.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/luna-classic-lunc-pricing-error-leads-to-mirror-protocol-exploit\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Luna Classic (LUNC) pricing error leads to Mirror Protocol exploit &#8220; A mismatch in the reported price of underlying assets on synthetic assets DeFi platform Mirror Protocol has caused an ongoing exploit that has the potential to drain all of its funds. The exploit was observed on May 29 by governance participant \u2018Mirroruser\u2019 on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":455320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvODllMGE1ODgtMWM3OC00NGJhLTgxZDctMjZkYzgzNDI4YzdjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74868,75434,122378,70375],"class_list":["post-455319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-defi","tag-smart-contracts","tag-terra","tag-cybersecurity"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/455319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=455319"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/455319\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/455320"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=455319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=455319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=455319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}