{"id":478921,"date":"2022-07-29T05:48:19","date_gmt":"2022-07-29T02:48:19","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/solana-based-stablecoin-nirv-drops-85-following-3-5m-exploit\/"},"modified":"2022-07-29T05:48:19","modified_gmt":"2022-07-29T02:48:19","slug":"solana-based-stablecoin-nirv-drops-85-following-3-5m-exploit","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/solana-based-stablecoin-nirv-drops-85-following-3-5m-exploit\/","title":{"rendered":"# Solana-based stablecoin NIRV drops 85% following $3.5M exploit"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e0715b8d90\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e0715b8d90\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/solana-based-stablecoin-nirv-drops-85-following-3-5m-exploit\/#%E2%80%9D_Solana-based_stablecoin_NIRV_drops_85_following_35M_exploit_%E2%80%9C\" >&#8221; Solana-based stablecoin NIRV drops 85% following $3.5M exploit &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/solana-based-stablecoin-nirv-drops-85-following-3-5m-exploit\/#Another_algo_bites_the_dust\" >Another algo bites the dust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/solana-based-stablecoin-nirv-drops-85-following-3-5m-exploit\/#How_it_worked\" >How it worked<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Solana-based_stablecoin_NIRV_drops_85_following_35M_exploit_%E2%80%9C\"><\/span>&#8221; Solana-based stablecoin NIRV drops 85% following $3.5M exploit &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNTQxMGNiMDUtOGEzNS00ZjQzLTg0YjgtYjkwZWZmOTViNTkxLmpwZWc=.jpeg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>Solana-based algorithmic stablecoin NIRV has become the latest stablecoin to fail, after dropping 85% from its dollar peg following a hack on adaptive yield protocol Nirvana Finance on Wednesday. <\/p>\n<p>The flash loan attack, which also saw Nirvana Finance\u2019s native token ANA drop by 85%, resulted in the loss of $3.49 million worth of Tether (USDT), with the SolanaFM team being the first to confirm that the funds were siphoned via a flash loan attack on July 27:<\/p>\n<blockquote><p>\u201cUtilizing Solend Protocol\u2019s Flash Loans, the hacker borrowed $10M USDC from the Solend Main Pool Vault which was used to exploit $3.49M USDT from the Nirvana Finance Treasury.\u201d<\/p><\/blockquote>\n<p>At the time of writing, both NIRV and ANA are down roughly 85% to $0.14 and $1.33 apiece. On Nirvana\u2019s website, it confirms that the protocol was \u201cmaliciously hacked and reserve funds are stolen. NIRV and ANA have lost their collateral, and do not have secured market value.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">What we know so far:<\/p>\n<p>Nirvana has been maliciously hacked and the reserves have been stolen.<\/p>\n<p>A flashloan attack was used to steal money. This is not the fault of Solend, but an exploit of Nirvana&#8217;s program.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/NkmtHAbAAa\">https:\/\/t.co\/NkmtHAbAAa<\/a><\/p>\n<p>\u2014 Nirvana Finance (@nirvana_fi) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nirvana_fi\/status\/1552635546626818058?ref_src=twsrc%5Etfw\">July 28, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Nirvana team is now offering the hacker a whitehat bounty of $300,000 and a \u201ccessation\u201d of the investigation into their identity. So far they revealed that the hacker\u2019s wallet tied to a centralized exchange has been flagged. <\/p>\n<p>&#8220;Please accept this good faith request and return our treasury for the good of the whole Nirvana community. You have not taken money from VCs or large funds\u2014the treasury you have taken represents the collective hopes of everyday people,&#8221; it wrote.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">To The Nirvana Hacker:<\/p>\n<p>On behalf of the Nirvana Finance community, we humbly ask that you return the stolen funds from our treasury.   1\/5<\/p>\n<p>\u2014 Nirvana Finance (@nirvana_fi) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nirvana_fi\/status\/1552761630127177730?ref_src=twsrc%5Etfw\">July 28, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Another_algo_bites_the_dust\"><\/span>Another algo bites the dust <span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The algorithmically collateralized NIRV is unironically described by the protocol as a \u201csuperstable\u201d token. According to an explanatory <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forums.solana.com\/t\/nirv-how-it-works\/7603\">thread<\/a> on Solana Forums, the asset is backed by a network of stablecoins in Nirvana\u2019s reserves via a \u201cdecentralized peg delegation.\u201d<\/p>\n<p>\u201cNIRV is always treated as $1 from the protocol\u2019s point-of-view. This dollar value is denominated in ANA tokens. For instance, if the spot price of ANA is $12, the protocol accepts 12 NIRV to purchase an ANA token.\u201d <\/p>\n<p>In this instance, it <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears that NIRV was depegged as a direct result of $3.49 million worth of USDT being stolen from Nirvana\u2019s coffers. It marks yet another algo-stablecoin that has been severely depegged in 2022. Beanstalk Farm\u2019s algorithmic stablecoin is sitting at $0.0022 after the protocol was hacked for $182 million in April. <\/p>\n<p>Terra\u2019s first variation of its algo-stablecoin Terra USD also famously imploded following a death spiral that resulted in $40 billion being wiped from the market in May. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_it_worked\"><\/span>How it worked<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to blockchain audit platform OtterSec, a hacker used a program to artificially pump the price of ANA from $8 to $24 via the flash loan. They were then able to mint ANA against the flash loan at the inflated price, and subsequently exchanged the asset for $3.49 million worth of USDT which was drained directly from Nirvana\u2019s treasury. <\/p>\n<p>OtterSec noted that his hack shared similarities with the attack on Crema Finance worth $10 million earlier this month, in which the attacker took out a flash loan from the Solend decentralized finance (DeFi) protocol to inflate pricing data and raid the protocol. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2\/ This hack beared many similarities to previous hacks. Similar to the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Crema_Finance?ref_src=twsrc%5Etfw\">@Crema_Finance<\/a> hack, this too used Solend flashloans. <\/p>\n<p>The attacker\u2019s program was also uploaded on-chain and closed im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely afterwards. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/kgg7C2M2Gq\">https:\/\/t.co\/kgg7C2M2Gq<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/GJaAZlfJZD\">pic.twitter.com\/GJaAZlfJZD<\/a><\/p>\n<p>\u2014 OtterSec (@osec_io) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/osec_io\/status\/1552589383655882752?ref_src=twsrc%5Etfw\">July 28, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>SolanaFM also noted that the hacker exited the attack by converting \u201cthe full USDT amount into USDCet, transferring the funds into an ETH account\u201d via Wormhole\u2019s cross-chain bridge. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/solana-based-stablecoin-nirv-drops-85-following-3-5m-exploit\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Solana-based stablecoin NIRV drops 85% following $3.5M exploit &#8220; Solana-based algorithmic stablecoin NIRV has become the latest stablecoin to fail, after dropping 85% from its dollar peg following a hack on adaptive yield protocol Nirvana Finance on Wednesday. The flash loan attack, which also saw Nirvana Finance\u2019s native token ANA drop by 85%, resulted&#8230;<\/p>\n","protected":false},"author":1,"featured_media":478922,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNTQxMGNiMDUtOGEzNS00ZjQzLTg0YjgtYjkwZWZmOTViNTkxLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74868,74882,92498,75493,70944],"class_list":["post-478921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-defi","tag-hacks","tag-solana","tag-stablecoin","tag-hackers"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/478921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=478921"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/478921\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/478922"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=478921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=478921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=478921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}