• Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
  • About Us
What's Hot

Thailand Imposes Taxes on Overseas Earnings of Crypto Traders – Impact on Foreign Investment?

September 19, 2023

BNB.WIN

September 19, 2023

The Crypto Chronicles: Unlocking the Power of PR Agencies in Nottingham

August 1, 2023
Facebook Twitter Instagram
  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
  • About Us
CryptodailyNews24
  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
  • About Us
CryptodailyNews24
Home»Blockchain»Solana: implosion of the DeFi Nirvana Finance protocol
Blockchain

Solana: implosion of the DeFi Nirvana Finance protocol

Donald MunnBy Donald MunnAugust 1, 2022Updated:September 29, 2022No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

A new decentralized finance protocol has imploded. It is Nirvana Finance, which runs on Solana’s blockchain. 

Nirvana Finance liquidated

According to DeFiLlama‘s data, its TVL has all but dissolved. It went from $3.5 million to zero within a day. 

The problem was caused by an exploit that allowed hackers to drain the protocol’s wallets via what appears to be a flash loan-based attack.

#PeckShieldAlert Seems like @nirvana_fi exploited @peckshield
Exploiters already bridged stolen funds to Ethereum 0xB9AE2624Ab08661F010185d72Dd506E199E67C09 https://t.co/xsByVkbWKi pic.twitter.com/hXWuLgnViZ

— PeckShieldAlert (@PeckShieldAlert) July 28, 2022

NIRV, or the protocol’s stablecoin, lost peg and its value plummeted 85% in less than twenty minutes, while the native ANA token lost 80% of its value in the same period. 

The exploit has been officially confirmed, but details have not yet been released. 

The Nirvana protocol suffered an exploit today.

The Nirvana team is investigating the attack and will make an announcement to the community as soon as possible.

— Nirvana Finance (@nirvana_fi) July 28, 2022

Just a few days ago the official Twitter profile wrote: 

“low risk = low reward

high risk = high reward

balanced risk = adaptive, sustainable, reasonable reward”.

low risk = low reward🪙

high risk = high reward💰

balanced risk = adaptive, sustainable, reasonable reward ☯💸✨$ANA #Nirvana #DeFi https://t.co/RtWLcBZ3aQ

— Nirvana Finance (@nirvana_fi) July 25, 2022

According to initial official reconstructions, the attack exploited erroneous pricing feeds to drain the protocol’s $3.5 million TVL via a flash loan. As a result, the native token and stablecoin crashed.

On-chain data show that the hacker opened a $10 million USDC flash loan with which he minted $10 million worth of ANA tokens. Flash loans allow even large amounts to be borrowed without having to pledge anything as collateral, since they are repaid within the same block in which they are created. The Solend protocol was used for this flash loan.

The actual attack would be to manipulate the oracle feed of the protocol by inflating the price of ANA tokens. In this way, the value of the ANA minted by the hacker surpassed $10 million, so much so that he was later able to resell them by cashing in $13.49 million in USDT.

After returning the borrowed 10 million USDC, he was left with 3.49 million USDT, which was later converted into DAI.  

With this action he effectively drained almost the entire $3.5 million from the Nirvana protocol wallet.

Solend stated that its protocol was not affected by the exploit.

The post Solana: implosion of the DeFi Nirvana Finance protocol appeared first on cryptodailynews24.com.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Donald Munn
Donald Munn
  • Website

Related Posts

BNB.WIN

September 19, 2023

Cryptocurrencies and startups related to mental health are important topics in today’s world, which have become especially relevant in the era of the COVID-19 pandemic

December 26, 2022

Premonitory signs of a bullish market, what does the VIX index show?

September 1, 2022

The Web3 Conference A Certified Carbon Neutral Event

September 1, 2022
Add A Comment

Comments are closed.

Advertisement
Top Posts

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

The latest news about Bitcoin, ICO, blockchain and fintech.

Top Insights

Thailand Imposes Taxes on Overseas Earnings of Crypto Traders – Impact on Foreign Investment?

September 19, 2023

BNB.WIN

September 19, 2023

The Crypto Chronicles: Unlocking the Power of PR Agencies in Nottingham

August 1, 2023
Get Informed

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
  • About Us
© 2023 cryptodailynews24.com Submit news release

Type above and press Enter to search. Press Esc to cancel.