Solana-based decentralized financial performance protocol Nirvana is the latest victim of a quick lending attack in the cryptocurrency space.

Data from blockchain security firm, PeckShield, revealed that the attacker managed to drain nearly $3.5 million in funds from the protocol. It all started when the entity behind the exploit used a $10 million flash loan in the USDC stablecoin to mint $10 million worth of ANA tokens from the Solend Main Pool Vault. Instant loan attacks are basically a quick pump and dump using the fast, unsecured loans available through some DeFi platforms. The Oracle feed of the protocol was manipulated to artificially increase ANA’s token holdings to exceed $10 million, which was later exchanged for $13.49 million in USDT. The hacker converted the entire amount of USDT into USDCet, thereby transferring the funds to an ETH account through Wormhole. The attack ultimately led to a $3.49M USDT leak from Nirvana’s Financial Treasury. Nirvana has yet to release an official statement about the exploit, but Solend has confirmed the incident in a tweet,

“We are aware of an exploit by @nirvana_fi that made use of Solend flash loans. We are in contact with the team to help in any way we can. Funds in Solend are safe.”

In recent months, several protocols have suffered from flash lending attacks. As previously reported, DeFi protocol Beanstalk Farms lost $180 million in a similar incident. The hacker reportedly donated 250,000 USDC to the Ukrainian Crypto Donation wallet.

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This post Solana-Based Algorithmic Stablecoin Crashes 99% After $3.5M Flash Loan Exploit

was published first on https://cryptopotato.com/solana-based-algorithimc-stablecoin-plummets-99-after-a-3-5m-flash-loan-exploit/

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