DeFi hacks are almost commonplace among crypto-verse because of their frequentity. 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.

$71 Million in Hacks Goes Unnoticed For Seven Months

Mirror Protocol allows you to create digital synthetics that track the real-world asset prices.

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.

According to on-chain data, the hacker was able to unlock UST funds from the Mirror protocol multiple times within one transaction. He paid just $17.54

Mirror Protocol is a victim to 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.

Terra nodes had outdated Oracle software which made the attack possible.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 communicating to 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 is under increasing 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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