Terra Luna Deadly End!
What would you do if someone stole all of your money? Well, that’s exactly what happened to the Terra Foundation on Monday. Someone stole $9 million — that’s with an “M” — worth of cryptocurrency from the company. Luckily, the CEO and co-founder Daniel Kwon and his team were able to take action immediately after finding out about the hack.
Kill switch!
“After careful consideration, we have decided to deploy a kill switch on Luna tokens to protect our community. We know that this decision will not be popular with everyone, but it is the right thing to do to ensure the safety of our users and protect their assets.”
If you’re reading this blog post after August 18th then you probably won’t care about what happened next because you’ll be dead.
Luckily, I’ve been able to salvage this blog article from before then using Terra Luna’s backup system (which was developed by me).
As I mentioned earlier, there’s an exploit that allows hackers who know how to use it to access your account and steal funds from other people’s wallets as well as yours!
Kwon posts:
“TERA team and I had no choice but to take this action to secure the integrity of the ecosystem,” Kwon said in a blog post. “We apologize for any inconvenience this may cause players, but we have never compromised on ensuring that TERA is a safe experience for all.”
The exploit took place on Monday, August 17, with the hackers reportedly earning around $9 million in cryptocurrency before the protocol was taken offline.
The attack exploited an existing flash loan exploit that allowed borrowers to borrow more liquidity than they had in collateral.
“We have no choice but to initiate the Armageddon protocol to ensure that TERA and LUNA remain stable for all users.”
The Armageddon protocol is a mechanism that locks up tokens for the period needed to stabilize the ecosystem. It is activated by the founder of the project, and can only be reversed by him or her; it will remain in effect until he or she decides otherwise.
The purpose of this mechanism is to ensure that TERA and LUNA remain stable for all users during these turbulent times.
The hackers managed to acquire user funds from various Defi projects through a flash loan exploit, which allowed them to borrow more liquidity than they had in collateral.
A Flash Loan Exploit
Terra Luna is a decentralized collateralized crypto lending platform that enables users to borrow against their portfolio. The hackers managed to acquire user funds from various Defi projects through a flash loan exploit, which allowed them to borrow more liquidity than they had in collateral. This was not an intentional bug created by Terra Luna, but rather an unintentional flaw in two other decentralized finance platforms: Balancer and SushiSwap.
“Forged” transactions then sent large amounts of funds from their liquidity pools on SushiSwap and Balancer into other wallets.
The hackers were able to send large amounts of funds from their liquidity pools on SushiSwap and Balancer into other wallets.
Despite the loss of investors, actions have been taken so that all investors are safe.
We will be repaying all victims of this hack promptly and in full. This is not an issue that you need to worry about, but we want to make sure you’re aware of what happened.
The exploit took place on Monday, August 17, with the hackers reportedly earning around $9 million in cryptocurrency before the protocol was taken offline. “TERA team and I had no choice but to take this action to secure the integrity of the ecosystem,” Kwon said in a blog post. The hackers managed to acquire user funds from various Defi projects through a flash loan exploit, which allowed them to borrow more liquidity than they had in collateral. “Forged” transactions then sent large amounts of funds from their liquidity pools on SushiSwap and Balancer into other wallets.
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