Nirvana Finance has suffered a flash loan exploit to the tune of about $3.5 million, The Block reports.
Nirvana Finance is a decentralized finance (DeFi) yield protocol on Solana.
Due to the exploit, Nirvana’s native token ANA and its stablecoin NIRV have suffered massive price falls.
ANA slipped 89% from $8.97 to $0.93 while NIRV has lost 90% of its US dollar value in the process.
According to the report, the attacker used a $10 million flash loan in USDC to mint $10 million worth of ANA tokens.
With flash loans, you can borrow large amounts of capital at low cost, as long as the loan is repaid in the same block.
This flash loan was secured on the Solend Protocol.
The attacker manipulated the protocol’s oracle feed, inflated the price of ANA coins so that their holdings exceeded $10 million, and then swapped what was actually $10 million in ANA tokens for $13.49 million in USDT.
This action drained $3.49 million from the Nirvana treasury.