Nirvana Finance Suffers Flash Loan Attack
On July 28 Solana-based DeFi protocol, Nirvana Finance lost $3.5 million to a flash loan attack.
As one of such loan types, a Flash Loan Attack is an abuse of the smart contract security of a particular platform in which an attacker usually borrows a lot of funds that don’t require collateral. They then manipulate the price of a crypto asset on one exchange and quickly resell it on another one. The process is swift, and the attacker repeats the process multiple times before finishing and leaving without a trace.
Lean more about Flash Loan Attack:
https://medium.com/dehacker-security/what-is-a-flash-loan-attack-10c169c0bf23
CoinGecko data revealed that Nirvana’s native token ANA losing 85% of its value in this attack. The token’s price fell from $8.97 to as low as $0.81 within hours of the attack before rebounding to its current value of $1.26.
Nirvana Finance team confirmed this exploit and said they are “investigating the attack and will make an announcement to the community as soon as possible”.
The hackers borrowed the initial $10 million USDC from Solend, another DeFi protocol on Solana and then calls the Buy3 command in the Nirvana to step by step drive down the value of the ANA an enormous amount.
But later Nirvana clarified that the attack was not resulted by Solend but rather due to an exploit of its system.
By now, it seems like the team has no solutions about this event.
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