LUNC pricing error results in vulnerability, millions of dollars exploited
Mistake in the pricing for Terra Classic validators allowed an exploiter to siphon off four synthetic asset pools from the DeFi platform Mirror Protocol.
- May 31, 2022,
- Updated Jun 17, 2022 11:41 PM IST
After dominating the crypto news for almost a month now, Terra Luna is still in the headlines, and this time again for all the wrong reasons. A discrepancy between the reported prices of underlying assets of Luna Classic and its synthetic assets on the DeFi platform Mirror Protocol has been compromised by an ongoing exploit.
In simple words, Terra Classic validators were running an outdated version of the oracle software. The validators on Terra Classic reported that the price of LUNC, the token native to the old block chain was same as that of Luna 2.0, the token on the new Terra blockchain.
As per data from CoinMarketCap, price of LUNC is $0.0001308 and price of Luna 2.0 is $9.67, as of 9:00 am IST.
The exploit was discovered on the protocol's forum on by governance participant 'Mirroruser.' The protocol's mBTC, mDOT, mETH, and mGLXY synthetic asset pools lost more than $2 million due to the vulnerability.
Several Twitter users reported this issue as well.
It is worth noting that the pricing error for LUNC has been resolved and the price being projected by the oracle has been restored to its true market value.
This is not the first occurrence of an exploit of this sort. Previously, DeFi platforms Venus Protocol and Blizz Finance were both targeted by exploiters in a similar manner in the past few weeks due to discrepancies in the actual price and the price reported by the price oracle.
DeFi protocol Blizz Finance’s funds were completely depleted, while Venus Protocol suffered an $11.2 million loss.
Also Read: What is crypto gas fee, and how do NFT creators negotiate? Find out. - BusinessToday
Also Read: Crypto markets in green for second day in a row; Bitcoin, Ethereum up - BusinessToday
After dominating the crypto news for almost a month now, Terra Luna is still in the headlines, and this time again for all the wrong reasons. A discrepancy between the reported prices of underlying assets of Luna Classic and its synthetic assets on the DeFi platform Mirror Protocol has been compromised by an ongoing exploit.
In simple words, Terra Classic validators were running an outdated version of the oracle software. The validators on Terra Classic reported that the price of LUNC, the token native to the old block chain was same as that of Luna 2.0, the token on the new Terra blockchain.
As per data from CoinMarketCap, price of LUNC is $0.0001308 and price of Luna 2.0 is $9.67, as of 9:00 am IST.
The exploit was discovered on the protocol's forum on by governance participant 'Mirroruser.' The protocol's mBTC, mDOT, mETH, and mGLXY synthetic asset pools lost more than $2 million due to the vulnerability.
Several Twitter users reported this issue as well.
It is worth noting that the pricing error for LUNC has been resolved and the price being projected by the oracle has been restored to its true market value.
This is not the first occurrence of an exploit of this sort. Previously, DeFi platforms Venus Protocol and Blizz Finance were both targeted by exploiters in a similar manner in the past few weeks due to discrepancies in the actual price and the price reported by the price oracle.
DeFi protocol Blizz Finance’s funds were completely depleted, while Venus Protocol suffered an $11.2 million loss.
Also Read: What is crypto gas fee, and how do NFT creators negotiate? Find out. - BusinessToday
Also Read: Crypto markets in green for second day in a row; Bitcoin, Ethereum up - BusinessToday