Once again, another stablecoin has recorded a tremendous dip in its value in the latest trading sessions. The drop was recorded after the particular stablecoin ended up getting victimized by an exploiter.
NIRV Stablecoin Suffers an Exploit
The latest reports suggest that NIRV, an algorithmic stablecoin based on the Solana blockchain has suffered a major exploit. As a result of the exploit, the value of the stablecoin has recorded a huge dip.
The price graph for NIRV has shown that the trading value of the stablecoin fell by 85%. The Solana-based stablecoin is pegged with the United States dollar.
The stablecoin ended up falling prey to a hack, which was attempted on Nirvana Finance. The particular protocol is based on the adaptive yield system and it was hacked on Wednesday.
The Exploit also took Down ANA Token
It was on Wednesday when a flash loan attack took place on the Nirvana Finance protocol. The attack even led ANA (Nirvana Finance’s native token) to record a huge drop.
ANA’s trading price reportedly went down by 85% just as the exploit took place. The exploit caused the protocol to lose a large amount of Tether (USDT). As reported by the protocol team, the Tether loss to the exploit translated to $3.49 million.
SolanaFM Team Reported the Incident
It was the SolanaFM team that reported the exploit before any other team or protocol. They confirmed that the flash loan attack was carried out on the protocol to steal away the funds.
The hacker reportedly used the Flash Loans feature available through the Solend Protocol to carry out the exploit. Using the particular functionality, the hacker was able to initiate a request to borrow USDC.
The investigation has revealed that the amount borrowed by the hacker was worth 10 million USDC, which translates to $10 million. The teams have confirmed that the USDC that the hacker borrowed was from the Main Pool Vault of Solend.
Taking advantage of the pool, the hacker was able to exploit a total of 3.49 million USDT, amounting to $3.49 million. These funds were stolen by the hacker through the Nirvana Finance Treasury.
Trading Values of ANA and NIRV
The exploit has caused the trading values of ANA and NIRV to experience great dips. Following the hack, the trading values of both digital assets have dipped by 85%. At the time of writing, the trading value of NIRV is $1.33 while the trading value of NIRV is worth $0.14.
The network has confirmed through the website that the hacker was able to gain access to their reserve funds on the protocol. As a result, both digital assets ended up losing their collaterals.