MIRROR PROTOCOL

DESCRIPTION OF EVENTS

"Mirror is a DeFi protocol powered by smart contracts on the Terra network that enables the creation of synthetic assets called Mirrored Assets (mAssets). mAssets mimic the price behavior of real-world assets and give traders anywhere in the world open access to price exposure without the burdens of owning or transacting real assets."

"The minting of mAssets is decentralized and is undertaken by users throughout the network by opening a position and depositing collateral. Mirror ensures that there is always sufficient collateral within the protocol to cover mAssets, and also manages markets for mAssets by listing them on Terraswap against UST."

"The Mirror Token (MIR) is minted by the protocol and distributed as a reward to reinforce behavior that secures the ecosystem. With it, Mirror ensures liquid mAsset markets by rewarding MIR to users who stake LP Tokens obtained through providing liquidity. Also to incentivize users to ensure mAssets to mimic the price behavior of real-world assets, users who stake sLP Tokens obtained through shorting mAssets are rewarded with MIR. MIR is valuable as it is can be staked to receive voting privileges and to earn a share of the protocol's CDP withdrawal fees."

"Mirror is a project developed and steered by its community: its markets are maintained by its own users through MIR incentives, and the protocol evolves with new ideas through democratic governance."

"Mirror Protocol is sufferring by a planned governance attack. The attacker launched a series of fake polls to defraud the $MIR token in the governance page. So far, the proposals 185, 198, 204, 206, 207, 208 are idenfied as scam proposals. Please try to vote NO on these polls. If attacker got success it might caused 30+ M worth $MIR tokens on Terra."

"A series of fraudulent polls have recently been launched against Mirror Protocol in an effort to steal tens of millions of dollars and bring it down." "The attackers are also flooding the governance page with fake polls in hopes that people cannot find polls like 185 and to confuse them. They have also timed their attacks to coincide with the Christmas and New Years holidays hoping to catch the MIR community sleeping and off-guard."

"The summation of MIR trying to be stolen via these attacks are worth over $40 million, or 1/3rd of the community pool."

Explore This Case Further On Our Wiki

Mirror Protocol is a Terra project which allows the creation of synthetic assets that mirror other assets like stocks. The protocol uses a governance protocol. This protocol was attacked by creating a large number of malicious proposals that give funds to the attacker ($40m in total). There doesn't appear to be any indication that any funds were actually sent to the attackers.

CertiK Blockchain Security Leaderboard (Jan 4)
Mirror (Jan 6)
Summary of Latest Attacks on Mirror Protocol - General - Mirror Protocol Forum (Jan 6)
Home - mirror (Jan 6)
https://docs.mirror.finance/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MLRzugf7mxc4ryNhTuq%2Fuploads%2F0t3znySsjF6CiLrcT0mI%2FMirror_Protocol_V2.pdf?alt=media&token=b5728c7d-7f12-4f41-8ce6-8347da02b9ff (Jan 6)
DocSend (Jan 6)
https://mobile.twitter.com/certikorg/status/1474810787193659401 (Jan 7)

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