Solana-Based Algorithimc Stablecoin Plummets 99% After a $3.5M Flash Loan Exploit

Solana-Based Algorithimc Stablecoin Plummets 99% After a $3.5M Flash Loan Exploit

Solana-based decentralized finance yield protocol, Nirvana, is the newest sufferer of a flash mortgage assault within the cryptocurrency area.

Data from blockchain safety agency, PeckShield, revealed that the attacker managed to empty practically $3.5 million price of funds from the protocol.
It all began when the entity behind the exploit used a $10 million flash mortgage in USDC stablecoin to mint $10 million price of ANA tokens from the Solend Main Pool Vault.
Flash mortgage assaults are mainly a fast pump-and-dump that makes use of the fast and collateral-free borrowing obtainable by way of ————.
The protocol oracle feed was manipulated to artificially jack up the holdings of ANA tokens’ to surpass $10 million, which was then swapped for $13.49 million in USDT.
The hacker transformed the complete USDT quantity into USDCet, thereby transferring the funds into an ETH account via Wormhole.
The assault finally led to a drain of $3.49M USDT from the Nirvana Finance Treasury.
Nirvana is but to launch an official assertion relating to the exploit, however Solend has confirmed the incident in a tweet,

“We’re aware of a @nirvana_fi exploit that made use of Solend flash loans. We’re in contact with the team to help in any way we can. Funds on Solend are safe.”

In current months, a number of protocols have suffered flash mortgage assaults.
As reported earlier, DeFi protocol, Beanstalk Farms misplaced $180 million in a comparable incident. It appeared that the hacker donated 250,000 USDC to the Ukraine Crypto Donation pockets.

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