KEY POINTS

  • LUNA 2.0 launch may have caused a bug in Anchor Protocol 
  • The team was qucik to catch the exploit
  • LUNA Classic trading up 45.56% at $0.0001296

The Terra community was hyped with the official rollout of LUNA 2.0 over the weekend, but decentralized lending and borrowing platform Anchor Protocol appeared to have an oracle problem at the time that allowed "someone lucky enough" to easily earn almost $800,000.

The Anchor Protocol issue was spotted by a Twitter user who goes by the name vic_vae. Based on the information, LUNA Classic's price oracle surged to $5 when the token's actual price was much lower than that.

A price oracle is the price information of an asset as shown in the app or platform. A user of the Anchor Protocol platform reportedly noticed this bug and deposited approximately 20 million Lido Bonded Luna tokens, which the platform took as $100 million.

Cryptocurrency Criminals
Hooded shadowy figure in front of code Richard Patterson www.comparitech.com/flickr.com

In reality, the actual value of the funds deposited by the user was only around $200,000 and after seeing the bug, they took a $40 million UST loan and withdrew it with an $800,000 profit. "#LUNC oracle price after the launch of #luna2 went to $5 and someone deposited around 20mln #BLuna, which was considered $100mln by @anchor_protocol and took a loan of $40mln #UST. #LUNA $800k for someone lucky enough," vic_vae said on Twitter."

Anchor Protocol may have also spotted the bug and according to the Twitter user since those who noticed the price oracle issue attempted to exploit the bug but faced an error. Apparently, the team was quick enough to catch the bug and fix the issue before several other users could exploit it.

Anchor protocol has not said anything about the said bug despite the claim of the Twitter user, who even furnished details of the user's activities based on the data from the transaction tracker Terra Finder.

Following the launch of LUNA 2.0, the old native token of Terra is now called LUNA Classic, which was trading up 45.56% at $0.0001296 with a 24-hour volume of $122,269,291. LUNA 2.0, on the other hand, was trading down 3.86% at $5.87 with a 24-hour volume of $138,174,164 as of 1:55 a.m. ET on Monday, based on data from CoinMarketCap.

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