Solana-Based NIRV Stablecoin Drops 85% After $3.5M Exploit

The $3.5 million Solana-based Nirvana Finance flash loan attack saw the price of its stablecoin NIRV and of its native ANA token drop by around 85% each.< /p> New

The Solana-based algorithmic stablecoin NIRV has become the latest stablecoin to fail, after falling 85% from its dollar peg following a hack of the Nirvana Finance adaptive return protocol on Wednesday.

The flash lending attack, which also saw Nirvana Finance's native ANA token drop 85%, resulted in the loss of $3.49 million from Tether (USDT), with the SolanaFM team being the first to confirm the funds were embezzled via a flash loan attack on July 27:

"Using Solend Protocol flash loans, the hacker borrowed $10 million USD from the Solend Main Pool Vault, which was used to mine $3.49 million USD from the Nirvana Finance Treasury."< /p>

As of this writing, the NIRV and ANA are down about 85%, to $0.14 and $1.33 each. On Nirvana's website, it confirms that the protocol has been "maliciously hacked and reserve funds stolen. NIRV and ANA have lost their warranty and have no guaranteed market value."

What we know so far:

Nirvana was maliciously hacked and reserves were stolen.

A flashloan attack was used to steal money. Not Solend's fault, but an exploit of the Nirvana program.https://t.co/NkmtHAbAAa

— Nirvana Finance (@nirvana_fi) July 28, 2022

The Nirvana team is now offering the hacker a $300,000 bounty and a "cease" from investigating his identity. So far, they have revealed that the hacker's wallet linked to a centralized exchange has been reported.

"Please accept this request in good faith and return our cash for the good of the entire Nirvana community. You did not take any money from VCs or large funds - the cash you took represents collective hopes of ordinary people," he wrote. .