You are currently viewing -90%: After the UST disaster, a new stablecoin collapses in seconds

-90%: After the UST disaster, a new stablecoin collapses in seconds

  • Post category:Economy News
  • Reading time:3 mins read

Unbacked stablecoin projects are legion… and times have been tough for them in recent weeks. Now a new project is attacked and its stablecoin collapses miserably: on Solana, the project NirvanaFinance had a rough awakening…

It is the specialized company PeckShield who sounded the alarm this morning: a little clever one thus took advantage of the generosity of the protocol to exploit it and steal $3.5 million. To do this, the hacker used a classic of decentralized finance: a flash loan. This type of loan is special: the loan and its repayment must take place in the same transaction.

In detail, the clever hacker contracted a loan of 10 million dollars in USDC, in order to exchange them for $10 million of ANA tokens, the cryptocurrency of the Nirvana Finance project. To do this, he made his flash loan on the Solend platform. He then manipulated the oracles allowing the protocol to judge the price of the ANA, to make him believe that the ANA was worth more than its true worth. According to the Block, his hack allowed him to exchange $10 million worth of ANA for $13.49 million in USDT.

Detail of the flash loan that enabled the Nirvana Finance hack

In the end, the hacker was then able to repay his loan from Solend, and keep 3.49 million dollars which he hastened to transfer from the blockchain. Solana to the blockchain Ethereum. He finally converted them into another stablecoin, the DAI.

As a result, the project’s ANA token crashed from $8.90 to $1.95 at the time of this writing. The NIRV stablecoin developed by Nirvana Finance and supposed to stay around a constant value of one dollar has not had a better fate, dropping automatically to 10 dollar cents.

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