Another Stablecoin Crash; This Time Its On Solana (SOL)

Solana

On July 28th, Solana-based decentralized finance protocol Nirvana Finance confirmed on twitter that it suffered a flash loan attack for USD 3.5 million which immediately led to the nosedive of its native token ANA and stablecoin NIRV.

Another dollar pegged stablecoin destabilizes

Crypto analytics firm Packshield, had first confirmed the exploit, the attacker used a $10 million USDC fast loan to acquire $13.5 million profit in ANA. This swift attack subsequently led to the plunge in value of ANA and NIRV.

This exploit has led ANA to lose over 83% of its value in 24 hours to trade at $0.85, from over $8 just few days ago while Nirvana’s dollar-pegged stablecoin NIRV depegged and fell by more than 90% and now trades at less than a cent in the past, according to CoinMarketCap.

According to reports, crypto analysts had already predicted this event which is now likened to the TERRA/LUNA catastrophe. Mainly because of the lack of liquidity, the prior price of ANA was bound to swiftly decrease to the floor price, which would then be decided by an agreement between ANA and its investors.

Nirvana Finance willing to halt investigations if hacker returns stolen fund and takes $300,000 bounty

Nirvana, which is the first native computing stable currency project on the Solana chain and which operates a dual-currency system, has appealed to the hacker who exploited its system. Its currencies ANA and NIRV are well on their way to zero. It wrote to the attacker on Twitter,

Please be aware your CEX connected wallet has been flagged and we are working with a variety of resources to uncover your identity, recover the stolen funds, and make our community whole.In recognition of your discovery of a vulnerability in our protocol, we are willing to offer a white hat bounty of $300,000 and a cessation of investigation.

The protocol also relayed that it was the yield protocol that was exploited, and it wasn’t a fault of Solend.

The post Another Stablecoin Crash; This Time Its On Solana (SOL) appeared first on CoinGape.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Breaking: Bitcoin (BTC) Price Risks Falling Below $21,000, Here’s Why

The Bitcoin (BTC) price can fall below $21,000 as the bear hug tightens. The price recently touched a high of $25,135 and retraced to a low of $23,243. The downward price trend has formed a regular bearish divergence with a short-term target of falling to $21,000-$20,000. The Crypto Market Fear and Greed Index has tumbled

BTC, ETH, DOGE: Why Major Cryptos Are Trading In Red Today?

Today’s slump in the price of crypto giants including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) has left investors disappointed. At the press time, BTC was trading at $23,379.13, down by 4.05% over the last 24 hours. Meanwhile, the price of ETH and DOGE was spotted trading at $1,845.20 and $0.082021, a decline of 5.11%

Ether (ETH) Falls for Fourth Consecutive Day, Is Merge Mania Ending?

After a strong rally in the last 45 days since the beginning of July 2022, the crypto market has once again come under selling pressure. The broader crypto market has been retreating for the fourth consecutive day in a row, including the top two giants Bitcoin and Ethereum. As of press time, Ether (ETH) is

Fidelity Chief Explains Why Bitcoin (BTC) Is Cheap At Current Level

Over the last 45 days since July 2022 beginning, Bitcoin and the broader cryptocurrency market have given a strong run-up. As of now, Bitcoin is currently facing resistance at $24,000. Jurrien Timmer, Director of Global Macro at Fidelity believes that Bitcoin is currently “cheap” as per the BTC adoption curve thesis. Timmer explains that Bitcoin’s