DeFi hacks have become almost commonplace within the cryptoverse due to their frequency. However, what is certainly unusual is DeFi protocol exploits worth $90 million going unnoticed for seven months – and yet, that is the story of Mirror Protocol.

A $90 million Hack goes unnoticed for seven months

Mirror Protocol, a distributed application that tracks the prices of real-world assets and allows the creation digital synthetics.

On May 17th, community members discovered a bug in the Mirror Protocol’s code that allowed a hacker to gradually siphon as much as $90 million, starting from October 8th, 2021.

According to a user under the alias of “FatMan“, the bug allowed the hacker to unlock other users’ collateral on Mirror Protocol, and withdraw it for themselves.

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

The on-chain data confirms that the hacker successfully unlocked UST funds within Mirror protocol multiple transactions, and paid only $17.54 for this.

Mirror Protocol suffers another hack

The DeFi protocol was again attacked just days following the discovery. It suffered another attack on May 30, 2013.

Reports state that the recent hack resulted from an error in configuration of price oracles. The attacker took advantage of a mismatched value between the old LUNC token (and the new LUNA) token.

Due to Terra nodes running outdated Oracle software, the attack was possible. The hacker stole upwards to $2 million from the protocol, according to a Chainlink member who saw the attack.

Flipside

• Mirror Protocol developers fixed the bug quietly on May 9, without anyone being informed by the community.

What You Need to Care About

This is not the first DeFi exploit, but it’s the longest time it took to get one reported. Terra continues to feel the pressure.

For a better understanding of DeFi, please read the following:

Decentralized finance (DeFi), an introduction

You can find Terra’s performance here:

Terra (LUNA), tanks 70% just hours after Terra 2.0 goes live

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