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Another stablecoin lost its peg against the US dollar after the protocol was abused.
Nirvana Finance, Solana’s Decentralized Finance (DeFi) yield protocol, is the victim of a flash loan attack, losing about $ 3.5 million to attackers. This is due to PerkShield.
After the attack, Nirvana’s native token ANA and its stablecoin NIRV recorded a significant price drop. ANA has so far lost more than 89% of its value, dropping from $ 8.97 to $ 0.93.
NIRV Stablecoin has lost a peg against the US dollar after losing more than 90% of its value since the attack.
According to on-chain data, hackers used a $ 10 million flash loan at USDC to create $ 10 million worth of ANA tokens. Flash loans allow people to borrow large amounts of capital at low cost as long as the loans are repaid within the same block.
The data show that the flash loan was secured by the Solend Protocol, the Solana blockchain lending protocol.
Hackers used Nirvana’s Oracle feed to boost the price of ANA coins. Therefore, we guarantee that their holdings will exceed $ 10 million.
The attacker exchanged the original $ 10 million worth of ANA tokens for $ 13.49 million worth of USDT stablecoin.
The attack removed $ 3.49 million from Nirvana’s finances, repaying the first $ 10 million loan and transferring the profits to Ethereum’s wallet address via a wormhole.
The attacker then converted the funds into DAI stablecoins. At this time, Nirvana has not yet issued an official statement regarding the attack.
The Solend team said they were aware of the attack and were in contact with the Nirvana team to see how they could help.
We know @nirvana_fi Exploit using Solend flash loan. We are in contact with the team and will do our best to assist you. Solend’s funds are safe.
Solend (recruiting!) (@ Solendprotocol) July 28, 2022
The DeFi protocol has been hit by numerous flash loan attacks over the past year. In April, Ethereum’s stablecoin project, Beanstalk, lost $ 182 million, considered the largest ever flash loan exploit in the cryptocurrency space.
