On May 25, FatManTerra, a Terra analyst and multiple whistleblower claims that Mirror Protocol is a “farce designed to enrich Do Kwon/VCs while manipulating governance and screwing over retail.” FatManTerra identified a wallet leveraging the Mirror Protocol yield farming smart contracts using Etherscan. According to FatManTerra, the wallet created the smart contract 0xdb27, which is part of the Terra wormhole infrastructure and a Mirror Protocol liquidity pool. The contract looks to be an LP pool for some protocol, however at the press time, it is neither confirm or deny that it is associated with Mirror Protocol. The MIR token scam in the wallets listed in the Twitter thread appears to be completely staked, giving them a disproportionate amount of voting power in MIR governance when combined.
FatManTerra points out that this wallet:
“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.”
FatManTerra then finds a number of wallets that engaged by bridging tokens over the wormhole, moving mAssets from Ethereum to Terra, acquiring $750 million tranches of UST, and dispersing MIR among numerous wallets in a manner similar to the wallets previously detailed. According to the sources, the top 20 MIR wallets have issues. FatManTerra’s next charge is supported by the statistics. He reportedly stated:
“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.”
FatManTerra claims that someone with a lot of money and access to LP contracts was dispersing the MIR tokens scam among numerous wallets to give the impression that the protocol was more decentralised. The charge is devastating to Mirror Protocol’s image; nevertheless, the following portion of the thread shifts his accusations in a different way.
I was initially going to leave this one out but I'll throw it in. Through a few hops, we can trace MIR coming from the official TFL wallet to this address. https://t.co/RWUrp5Qnse In batches, they are dispatched to this Ethereum wallet. https://t.co/QPTF0oUAu2 (13/19)
— FatMan (@FatManTerra) May 25, 2022
FatManTerra claims that one of the wallets he’s been following has been sending tokens to a DAO account where Do Kwon is an official adviser. He then goes on to explain how MIR money from this web of wallets were moved to Binance and KuCoin, where they were sold on the open market.
The accusations may be traced by looking at the data on the blockchain, which he claims “corroborates much of what the employee currently working at Jump told me.” FatManTerra finishes the post by remarking that “I urge that individuals analyse the evidence and develop their own judgments wherever feasible”.
The question now is if these wallets can be formally linked to Do Kwon and Jump Capital, as he claims, and whether FatManTerra’s unknown sources will come out and share additional information publicly.
