[Warning] All mAssets are going to $0.00 at 4am on May 31st

Hi all,

Thanks to TFL for closing down Mirror Protocol’s Telegram channel, now we can’t communicate this to everyone.

Please be aware that in about 13 hours, if nothing is quickly fixed by Band Protocol (the Oracle), all mAssets are going to zero.

In short: It is currently possible to mint new mAssets using LUNC as collateral, which has a value of about USD $0.00014. The problem is that BAND is reporting the value of LUNC as if it was the same asset than LUNA2 (probably because it uses the ticker LUNA). Hence, Mirror Protocol currently considers that LUNC as a value of 8.27 UST.

The effect of that is that someone can buy 7142 LUNC for USD $1.00 and the protocol will think this person has assets worth 59 064 UST. Then the user can use a collateral ratio of 150% to mint 39 376 UST worth of new mAssets or about USD $984.00 (for an initial buy of USD $1.00).

So: buy LUNC → mint mAssets → sell for UST → sell for USDC → buy LUNC → […].

The process will repeat itself until all mAssets are worth 0 because all the UST in the pools will have been drained.

I hope someone on the Oracle side is aware of the issue, but we would highly recommend to everyone still providing liquidity at the moment to exit all positions asap. Clock is ticking and the end may be near for the protocol.

Edit 1 (13 hours before premarket opens on May 31st): We have just reported the issue to Band Protocol’s team. Hopefully they can do something in the next 13 hours.

Edit 2 (7 hours before premarket opens on May 31st): Thanks to FatMatTerra and The Block for talking publicly about the issue it has now been resolved. That being, as Hank-O pointed out, another round of dump is coming our way:

Accordingly, the best thing to do at the moment is get out of any LP and reassess in about 7 hours.

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Did the people you reach out say something?

Thank you. Amd will second the call to everyone to leave their long and long farm positions.

I posted same warning on twitter Saturday to FatmanTerra (he claimed to have various inside sources at Mirror and also acted as if he cared about the demise of Terra Classic). But did not get a reaponse.

Its a sad situation. But AFTER THE POOLS ARE DRAINED, I think the MIR reawrds will compensate you enough to buy some and long Farm. And im not sure if closing the short farms are a good idea. Just buy enough to at a massive discount to close out later.

I have no idea why the MIR token is doing well given the drop in TVL and all the glitches. So agree this may be the end.

There is nothing that can be done at this point. If you still hold any mAssets at this point, in all likelihood they will go to true zero once the market opens. There is close to 1B UST worth (based on oracle price) of mBTC + mETH + mDOT that has been minted at this point and which have less than 1% collateral value backing them.

Even if the oracle feed is fixed, those uncollateralized mCrypto can be used as collateral to mint all the other mStocks which are currently closed for the weekend. As soon as the oracles turn back on around 4AM Tuesday, the mass minting will begin and the LPs will get drained of any remaining UST.

I wish there were some way to prevent that, but I’m not seeing anything that can be done.

EDIT: The one thing that can be done is spread the word to any mAsset holders that you know. At least let mAsset holders, LPs exit with the little value that they have left.

EDIT 2: Prior version suggested that Band needed to fix the oracle issue, but it was the on-chain oracle that was the issue, not Band. Fixed to clarify that.

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Sell Mortimer! Sell!!!

I’ve shared a message on my Twitter - hopefully it reaches more people this way.

Sorry friend, unfortunately I get hundreds of mentions and DMs every day of which I can only read a fraction, but luckily someone sent me to this thread a few hours ago and I was able to have someone verify that the attack was legitimate and ongoing. Thank you for sharing regardless. I don’t have any Mirror insiders and have never claimed to.

Uh oh… Not good.

Thanks for pointing that out, you are 100% right and we missed it in the heat of the action when drafting the original post.

The next step is to wait 6.5 more hours and see how everything will unfold once the premarket opens.

Thanks for sharing. For sure it helped get the LUNC issue resolved.

If price updates for mCryptos (mBTC, mETH, mDOT) and mGLXY can be turned off (and remain off), then these assets can’t be used as collateral to mint other mAssets. I believe the Mirror guardian angel has stepped in here and made that happen as price feeds for mCryptos were stopped a couple hours ago.

Not sure of the next step, but a delisting of the exploited mAssets I think may be in order.

Are any of you able to do anything? or is it all “Error: first argument must be a string, Buffer, ArrayBuffer, Array, or array-like object.”?

i was able to do a few things today, as follows:

  • successfully buy and sell all mAssets. if Mirror website doesn’t work, go to coinhall.org
  • But the LP are much smaller so to do this you may need to get the transaction size below $5,000 USTC
  • No long or short farming with mCrypto or mDOT or MGLXY
  • long farming on other mAssets worked but again needs to be small small sizes
  • no luck on short farming
  • also appears the mirror rewards are updating slower but happening.

the error message does come up but it also works when re-trying. the other issues is a well known problem with being sure you are on Classic and also maybe need to clear cache or switch to MS Edge browser. those were discussed extensively and not sure if still relevant. mine terra wallet is working on Chrome right now but cant say which change allowed it.

thanks. have tried every permutation I can think of. no luck so far. on mobile getting a new error "Error signature verification failed; please verify account number (xxxxxxx) and chain-id (columbus-5): unauthorized

@sadfarmer any luck?
In Terra classic wallet, I was trying to send my MIR token to exchange, I got the same error :Error: first argument must be a string, Buffer, ArrayBuffer, Array, or array-like object.”?
And I got the same error when I try to swap MIR to USTC.

However, I was able to send out USTC. so it is just MIR token can’t be sent or sold in Terra wallet

Switching to MS Edge and getting Terra Station 2.6 did the trick