Mirror Protocol Governance Attack - Revision history

Azoundria: Another 30 minutes complete. All sources merged in. Prevention added. Information relocated around.

2023-09-03T23:29:22Z

Another 30 minutes complete. All sources merged in. Prevention added. Information relocated around.

Azoundria at 21:36, 7 May 2023

2023-05-07T21:36:56Z

← Older revision		Revision as of 15:36, 7 May 2023
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	[[File:Mirrorprotocol.jpg\|thumb\|Mirror Protocol]]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.		[[File:Mirrorprotocol.jpg\|thumb\|Mirror Protocol]]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.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="certik-5262" /><ref name="mirrorprotocolapp-5314" /><ref name="mirrorfinanceforum-5315" /><ref name="mirrorfinancedocs-5316" /><ref name="mirrorfinancedocs-5317" /><ref name="docsend-5318" /><ref name="certikorgtwitter-5319" />
	<ref name="certik-5262" /><ref name="mirrorprotocolapp-5314" /><ref name="mirrorfinanceforum-5315" /><ref name="mirrorfinancedocs-5316" /><ref name="mirrorfinancedocs-5317" /><ref name="docsend-5318" /><ref name="certikorgtwitter-5319" />

	== About Mirror Protocol ==		== About Mirror Protocol ==
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	!Description		!Description
	\|-		\|-
	\|December 25th, 2021 ~~12:00:00 AM~~		\|December 25th, 2021
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	~~Which policies could have prevented this event from happening?~~

	== References ==		== References ==

Azoundria at 19:50, 28 February 2023

2023-02-28T19:50:11Z

← Older revision		Revision as of 13:50, 28 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/mirrorprotocolgovernanceattack.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/mirrorprotocolgovernanceattack.php}}
			{{Unattributed Sources}}

	[[File:Mirrorprotocol.jpg\|thumb\|Mirror Protocol]]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.		[[File:Mirrorprotocol.jpg\|thumb\|Mirror Protocol]]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.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="certik-5262" /><ref name="mirrorprotocolapp-5314" /><ref name="mirrorfinanceforum-5315" /><ref name="mirrorfinancedocs-5316" /><ref name="mirrorfinancedocs-5317" /><ref name="docsend-5318" /><ref name="certikorgtwitter-5319" />

	== About Mirror Protocol ==		== About Mirror Protocol ==
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	== References ==		== References ==
	[https://www.certik.com/ CertiK Blockchain Security Leaderboard] (Jan 4)		<references><ref name="certik-5262">[https://www.certik.com/ CertiK Blockchain Security Leaderboard] (Jan 4, 2022)</ref>

	[https://mirrorprotocol.app/#/trade Mirror] (Jan 6)		<ref name="mirrorprotocolapp-5314">[https://mirrorprotocol.app/#/trade Mirror] (Jan 6, 2022)</ref>

	[https://forum.mirror.finance/t/summary-of-latest-attacks-on-mirror-protocol/2469 Summary of Latest Attacks on Mirror Protocol - General - Mirror Protocol Forum] (Jan 6)		<ref name="mirrorfinanceforum-5315">[https://forum.mirror.finance/t/summary-of-latest-attacks-on-mirror-protocol/2469 Summary of Latest Attacks on Mirror Protocol - General - Mirror Protocol Forum] (Jan 6, 2022)</ref>

	[https://docs.mirror.finance/ Home - mirror] (Jan 6)		<ref name="mirrorfinancedocs-5316">[https://docs.mirror.finance/ Home - mirror] (Jan 6, 2022)</ref>

	[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 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)		<ref name="mirrorfinancedocs-5317">[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 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, 2022)</ref>

	[https://docsend.com/view/kcsm42mqiyu5t6ej DocSend] (Jan 6)		<ref name="docsend-5318">[https://docsend.com/view/kcsm42mqiyu5t6ej DocSend] (Jan 6, 2022)</ref>

	[https://mobile.twitter.com/certikorg/status/1474810787193659401 https://mobile.twitter.com/certikorg/status/1474810787193659401] (Jan 7)		<ref name="certikorgtwitter-5319">[https://mobile.twitter.com/certikorg/status/1474810787193659401 https://mobile.twitter.com/certikorg/status/1474810787193659401] (Jan 7, 2022)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/mirrorprotocolgovernanceattack.php}} Mirror ProtocolMirror 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 a..."

2023-01-28T16:31:46Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/mirrorprotocolgovernanceattack.php}} thumb|Mirror ProtocolMirror 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 a..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/mirrorprotocolgovernanceattack.php}}

[[File:Mirrorprotocol.jpg|thumb|Mirror Protocol]]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.

This is a global/international case not involving a specific country.

== About Mirror Protocol ==
"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."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Mirror Protocol Governance Attack
!Date
!Event
!Description
|-
|December 25th, 2021 12:00:00 AM
|Main Event
|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost has been estimated at $40,000,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Which policies could have prevented this event from happening?

== References ==
[https://www.certik.com/ CertiK Blockchain Security Leaderboard] (Jan 4)

[https://mirrorprotocol.app/#/trade Mirror] (Jan 6)

[https://forum.mirror.finance/t/summary-of-latest-attacks-on-mirror-protocol/2469 Summary of Latest Attacks on Mirror Protocol - General - Mirror Protocol Forum] (Jan 6)

[https://docs.mirror.finance/ 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 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)

[https://docsend.com/view/kcsm42mqiyu5t6ej DocSend] (Jan 6)

[https://mobile.twitter.com/certikorg/status/1474810787193659401 https://mobile.twitter.com/certikorg/status/1474810787193659401] (Jan 7)