TechFlow news — DeFi application Mirror Protocol on the Terra blockchain has come under attack again, with over $2 million already lost. The Bitcoin, Ethereum, and Polkadot liquidity pools have been drained. The remaining pools are tied to stocks; if the vulnerability is not fixed before market open at 4:00 a.m. Eastern Time (4:00 p.m. Beijing Time), all of its token asset pools will be at risk.
Mirror Protocol allows users to go long or short on tech stocks using synthetic assets, and operates on the original Terra chain (now known as TerraClassic). Todd Garrison, founder of validator node BlockPane, stated that the issue stems from most validators running nodes on the Terra Classic chain using outdated versions of price oracles, which continue to report the LUNC price as 5 UST. Garrison urged immediate fixing of the LUNC price oracle, warning that otherwise all liquidity pools will be depleted within hours, resulting in irrecoverable bad debt and causing the system to collapse autonomously.
