Hackers attacked Nirvana's DeFi project. Stablecoin NIRV lost parity against the dollar

A Solana-based yield farming protocol, Nirvana Finance, was attacked using an instant loan.Attackers withdrew digital assets worth $3.49 million from the project treasury.

“Nirvana protocol was exploited today. The team is investigating the attack and will make an announcement to the community shortly,” the developers wrote.

According to the Solana block explorer.fm, hackers used an instant loan of 10 million USDC on the Solend platform to manipulate the protocol's price oracle. The funds allowed them to issue a large number of utility tokens of the ANA project, the value of which as a result of these actions exceeded $10 million.

According to DeFi Llama, before the attack, just over $3.5 million in ANA was locked in the project’s smart contracts (not including staking).

Data: DeFi Llama.

At an “inflated” price, the attackers initiated an exchange of utility tokens for $13.49 million in USDT. Because the protocol deemed the asset issuance legitimate, it released liquidity from Nirvana's treasury.

After receiving the funds, the hackers repaid the debt on Solend and transferred the remaining amount to the Ethereum network through the Wormhole bridge.

The movement of funds during the attack. Data: Solana.fm.

According to CoinGecko, the attack caused the value of ANA to drop 78% to $1.96. The algorithmic stablecoin of the NIRV project has lost its peg to the US dollar—the asset is trading around $0.18.

Recall that in the II quarter of 2022, the total losses of crypto projects from hacks and fraud amounted to $670,698,280, according to Immunefi.

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