HomeCryptoCurrency NewsIs Mirror Protocol a Farce?

Is Mirror Protocol a Farce?

According to a Terra analyst, the synthetic asset trading protocol, ‘Mirror Protocol’, is a scam set up by Do Kwon to be a part of the Terra wormhole infrastructure.

On May 25, Terra analyst and whistleblower who goes by the pseudo name, ‘FatManTerra’, identified a wallet via Etherscan that deployed the Mirror Protocol yield farming smart contracts. The wallet created the smart contract 0xdb27, which FatManTerra alleges to be a part of the Terra wormhole infrastructure and a liquidity pool for Mirror Protocol. The whistleblower stated,

“Owned most of the Mirror LPs on Ethereum. They thus farmed most of the MIR rewards, which would allow them to have a disproportionate say in governance decisions.”

Why Is The Protocol Believed To Be A Forgery?

Is Mirror Protocol a Farce?

The whistleblower explained that the contract certainly appears to be acting as an LP pool for some protocol. However, he neither confirmed nor denied that it belongs to Mirror Protocol. It seems FatManTerra’s accusation holds true as CoinMarketCap, listed the mentioned wallet as one of the top 20 MIR wallets. The MIR held in the wallets identified is apparently all staked, giving them excessive voting power in the MIR governance when combined. The Terra validator remarked,

“I have found evidence that this wallet and related wallets try very hard to make it look like MIR governance is not majority-controlled by a single entity – they do so by splitting up MIR between several fresh anonymous wallets.”

Furthermore, FatManTerra also identified several wallets that interacted by bridging tokens across the wormhole, transferring mAssets from Ethereum to Terra, purchasing $750 million tranches of UST, and spreading MIR across multiple wallets similarly to the previously described wallets.

Is Do Kwon Behind The Mirror Protocol Sham?

He suggested that one of the wallets that he has been tracking sent tokens to a DAO address for which Do Kwon is an official advisor. He then describes how MIR funds incorporated in this web of wallets have been transferred to Binance and KuCoin to be sold on the open market.

FatManTerra emphasized that TFL & Jump have been working hand in hand to pull capital out of the Mirror ecosystem without fair disclosure to retail investors. He remarked,

“It appears to me that Mirror governance is a sham. It appears that the reason Mirror dev proposals get voted in so fast is because TFL and TFL-related entities secretly control most of the Mirror governance power behind the scenes without any proper disclosure.”

Subhasish is interested in all things crypto and finance. He switched from marketing to become a writer driven by the need to make sense of the dynamic market. He primarily focuses on on-chain data of Bitcoin, Ethereum, and the macroeconomic effects of crypto. Rock n’ Roll flows through these veins.
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