Solana-based stablecoin NIRV drops 85% following $3.5M exploit

cointelegraph.com:

Solana-based algorithmic stablecoin NIRV has become the latest stablecoin to fail after dropping 85% from its United States dollar peg following a hack on adaptive yield protocol Nirvana Finance on Wednesday.

The flash loan attack, which also saw Nirvana Finance’s native token ANA drop by 85%, resulted in the loss of $3.49 million worth of Tether (USDT), with the SolanaFM team being the first to confirm that the funds were siphoned via a flash loan attack on Wednesday:

At the time of writing, both NIRV and ANA are down roughly 85% to $0.14 and $1.33, respectively, at the time of writing. On Nirvana’s website, it confirms that the protocol was “maliciously hacked and reserve funds are stolen. NIRV and ANA have lost their collateral, and do not have secured market value.”

What we know so far:Nirvana has been maliciously hacked and the reserves have been stolen.A flashloan attack was used to steal money. This is not the fault of Solend, but an exploit of Nirvana's program.https://t.co/NkmtHAbAAa

The Nirvana team is now offering the hacker a whitehat bounty of $300,000 and a “cessation” of the investigation into their identity. So far, they revealed that the hacker’s wallet tied to a centralized exchange has been flagged.

“Please accept this good faith request and return our treasury for the good of the whole Nirvana community. You have not taken money from VCs or large funds—the treasury you have taken represents the collective hopes of everyday people,” it wrote. 

To The Nirvana Hacker:On behalf of the Nirvana Finance community, we humbly ask that you return the stolen funds from our treasury. 1/5

The algorithmically collateralized NIRV is unironically described by the protocol as a “superstable” token. According to an