Attack using instant loan was carried out on a profitable farming protocol based on Solana – Nirvana Finance. Attackers stole digital assets worth $3.49 million.
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
“The team is investigating the attack and will make an announcement to the community shortly,” the developers said.
According to block explorer Solana.fm, the attackers used an instant loan on the Solend platform in the amount of 10 million USDC to manipulate the price oracle of the protocol. Once they received the funds, they were able to issue a large number of ANA project utility tokens, the value of which as a result of these actions exceeded $10 million.
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On 28 July, adaptive yield protocol @nirvana_fi was exploited for $3.49M, forcing the protocol’s $ANA token price to collapse over 85%.
The SolanaFM team broke down the key movements involved during the exploit. 👇
Nirvana Hacker Account:https://t.co/Zsde5MdW0j pic.twitter.com/OYMMy2G1nb
— FA2 | SolanaFM (@0xFA2) July 28, 2022
According to DeFi Llamabefore the attack, just over $3.5 million in ANA was blocked in the smart contracts of the project (excluding staking).
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.
When the hackers received the funds, they paid off the debt on Solend and transferred the remaining amount to the Ethereum network through the Wormhole bridge.
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