Whether the fixing of a pricing error by Mirror Protocol, the decentralized finance (DeFi) application built on Terra Classic, will help prevent a drainage of the pool similar to last year will only be known by the end of U.S. trading hours on Tuesday.
See related article: Winning back the trust of the Terra community a tall order for Do Kwon: Experts
Fast facts
- The Mirror Protocol DeFi platform allows users to create and trade assets that mirror the price of stocks or major cryptocurrencies.
- Twitter user @FatManTerra wrote on Tuesday afternoon that the Protocol disabled mBTC, mETH, mGLXY and mDOT as collateral and thus prevented the attacker from draining other liquidity pools.
- A pseudonymous Mirror forum user named “Mirroruser” alleged last weekend that the exploit on the DeFi platform drained more than US$2 million.
- Terra Classic validators were reporting the price of the new Terra 2.0 token as US$9.80, instead of the Terra Classic (LUNC) token that was priced near zero, Twitter user @ChainLinkGod explained.
- This was because a majority of the Terra Classic and LUNC validators are running an outdated version of the pricing mechanism, Todd Garrison, founder of blockchain developer Block Pane, explained on Twitter.
- The exploit was spotted in liquidity pools mirroring Bitcoin, Ethereum, Polkadot and Galaxy Digital stock within Mirror Protocol, Twitter user @FatManTerra said.
- @FatManTerra first discovered the previous drainage in Mirror Protocol worth US$90 million that took place last year.
- Terra launched its new blockchain over the weekend taking over the name Terra (LUNA), while renaming the old chain and token Terra Classic and LUNA Classic (LUNC).
See related article: Terra 2.0 new LUNA is down 70% since restart
