The Solana-based yield protocol, Nirvana Finance, was hacked for $3.49 million worth of USDT tokens in a flash loan attack. Nirvana’s stablecoin NIRV and native token ANA have immediately dropped some 85% in value.
According to the audit company OtterSec, the attacker managed to use a flash loan in order to artificially increase the price of ANA. He or she then proceeded to mint the coin at a higher price and then exchanged it for USDT, taken from Nirvana’s treasury.
Finally, the hacker used the Wormhole cross-chain bridge to transfer the funds into an Ethereum account.
Nirvana Finance is offering $300,000 to the attacker if the money is returned. In a tweet, the company wrote that the money was taken directly from “everyday people”, whose funds were being kept in the treasury.
This is not the first stablecoin whose value has been depegged after a hacker attack in 2022. The Beanstalk Farm’s stablecoin was hacked for $182 million in April. And OtterSec notes the similarities between the Nirvana hack and another flash loan attack earlier this month, when Crema Finance was hacked for $10 million.