Terra 2.0 has launched and the old LUNA cryptocurrency has been renamed to Luna Classic, or LUNC.
The new LUNA token on the Terra blockchain was trading at $8.51 as of this writing, while LUNC was trading at $0.0001.
This price inequality has enabled an exploit in which an attacker reportedly drained more than $2 million from Mirror Protocol.
Mirror Protocol is a Terra DeFi project with an Ethereum token MIR.
On Mirror, users can trade synthetic versions of real equities, like shares of Amazon or Apple.
An issue with Terra Classic validators caused a mixup in the oracle’s price reporting of LUNC, listing LUNC’s price as LUNA’s.
The error reportedly occurred because many Terra Classic validators weren’t running an updated version of the price oracle.
The attacker exploited the price difference to use the inflated crypto to mint synthetic assets and then sell them for UST and USDC.
The exploit caused some of Mirror’s assets to plummet. Mirror is down more than 9% over the last 24 hours.
Reports have it that Mirror had disabled the use of mBTC, mETH, mGLXY, and mDOT as collateral to prevent further liquidity from being drained.