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NIRV Becomes Latest Stablecoin To Drop 85% After $3.5M Exploit

NIRV, the Solana-based algorithmic stablecoin, has become the latest stablecoin to fail after dropping 85% from its United States dollar peg after a hack on adaptive yield protocol Nirvana Finance last Wednesday.

It has been reported that the flash loan attack, which also saw Nirvana Finance’s 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 Wednesday.

The announcement stated:

“Utilizing Solend Protocol’s 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.”

However, as of July 29, both NIRV and ANA are down roughly 85% to $0.14 and $1.33, respectively. On Nirvana’s website, it confirms that the protocol was “maliciously hacked and reserve funds are stolen. NIRV and ANA have lost their collateral, and do not have secured market value.”

The report said that the Nirvana team is now offering the hacker a whitehat bounty of $300,000 and a “cessation” of the investigation into their identity. So far, they revealed that the hacker’s wallet tied to a centralized exchange has been flagged.

Thus, it wrote:

“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—the treasury you have taken represents the collective hopes of everyday people.”

Source: Cointelegraph




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