Band Protocol did not act as a decentralized and trustless oracle

I am currently working on a long-form document to demonstrate that Band Protocol cost me about USD $10,000 today.

As an oracle, Band Protocol has one job: provide good data.

Band Protocol is paid by Mirror Protocol and indirectly the users to provide good data.

As everyone I suffered heavy losses following the collapse of Terra Classic.

I saw what happened over the week-end with some mAssets and I took some actions taking into account the rules of the protocol and assuming that the oracle would be trustless and transparent.

At 9:30 am (EST), Band Protocol was still reporting on its website that GLXY was part of its feed to its partner Mirror Protocol. Band Partners

What I did not know, is that in the background, without notice and behind a black box, Band Protocol decided that it would not update the price of GLXY when the TSX would open.

Band Protocol failed to act as a decentralized, secure and trustless oracle. Band Protocol decided that passive users should have their money saved and to cost a lot to other users that acted quickly to have a shot at recovering some losses and that played by the rules.

Band Protocol decided to bypass Mirror’s governance system. It decided who would win or lose.

From now on, Band Protocol cannot be trusted as an oracle for DeFi applications. There is now a precedent showing that it will not hesitate to intervene and act based on its own vision of what is right or wrong. That is pretty scary. What would happen if someday Band Protocol has a financial interest to not report a certain data or to report bad data? If it acted like God today, why not another day?

I took videos of everything and I am currently drafting a long-form report. All the losses I incurred today can directly be linked to Band Protocol actions.

Why not give notice that you would not update the price of GLXY? Why not act as you are intended to act when you are the oracle?

DeFi cannot happen without real decentralization. Losing money because of decentralization is part of the game. Losing money because a party claiming it is decentralized took action and rekt me is not acceptable.

If you suffered losses because of Band Protocol today, please DM me. We can take action.

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That right here is a real issue.

In a way Band may have save the day. But now users can either exit their position at 50% premium or take the risk of staying in but if Band suddenly decides to start updating the prices again then everything goes to zero.

We were dealing with the complexities of Mirror Protocol. Now we are dealing with the risks of the protocol itself and the uncertainty surrounding how the oracle will act.

I tend to agree that Band should have stayed neutral here. That is what is expected from the oracle in a DeFi environnent.

Decentralization in a nutshell. It is sold as a main point, but in fact it does not exist.

I was thinking exactly the same thing yesterday, even though I understand the measures were supposed to protect mirror protocol.

Decentralization is a joke nowadays. It’s more like devs/KOL-centered finance.

To devs and whales: Please stop promote Mirror as a DeFi protocol.

That’s one more scandal. I don’t even want to know how much $$$ involved persons made/make with that Mint/Burn blocking. If they loaded up on mBTC, mETH, mDOT and mGLXY before suspending LUNA as Collateral, they now basically have multiple 10x’s… And people keep buying now so they can comfortably unload

Within Mirror, it is decentralized when there is a responsibility or when it is convenient. When TFL decided to rekt you