Solana DeFi Protocol Nirvana Drained of Liquidity After Flash Loan Exploit (coindesk.com) 47
Nirvana Finance, a Solana-based yield protocol, suffered a $3.5 million exploit utilizing flash loans to manipulate and drain its liquidity pools, blockchain data shows. CoinDesk reports: The price of the protocol's native ANA token fell over 80% in the past few hours, while its NIRV stablecoin lost its peg to the U.S. dollar and dropped to 8 cents at writing time, CoinGecko data shows. Nirvana allowed users to earn annual yields of over 100% on their locked assets by creating and destroying tokens based on user demand as the ANA tokens were bought from and sold to the protocol. Over $3.5 million worth of ANA was locked on the protocol before the attack on Thursday.
Data from blockchain explorers shows the attack used over 10 million USDC sourced from lending tool Solend in a flash loan. At that point over $10 million worth of ANA was minted, or created, and the entire amount swapped to receive $3.5 million worth of tether (USDT) from Nirvana's treasury wallet. This was possible because the treasury considered the 10 million USDC infusion to be genuine. However, it wasn't, and the protocol was hence tricked into releasing its treasury's liquidity. The total value locked (TVL) on Nirvana fell to 7 cents in European morning hours following the attack. Its entire liquidity pool was effectively drained, data from DeFi Llama shows.
The 10 million USDC was returned to Solend after the exploit. The stolen funds were transferred to the Ethereum network using Wormhole, a blockchain tool that connects Solana to other networks, and converted to DAI, an Ethereum-based stablecoin, blockchain data shows. The attacker address -- 0xB9AE2624Ab08661F010185d72Dd506E199E67C09 -- currently holds over $3.5 million worth of DAI, blockchain data shows. Nirvana's trading functions were suspended by developers following the attack, as per messages by admins on the protocol's Telegram channel.
Data from blockchain explorers shows the attack used over 10 million USDC sourced from lending tool Solend in a flash loan. At that point over $10 million worth of ANA was minted, or created, and the entire amount swapped to receive $3.5 million worth of tether (USDT) from Nirvana's treasury wallet. This was possible because the treasury considered the 10 million USDC infusion to be genuine. However, it wasn't, and the protocol was hence tricked into releasing its treasury's liquidity. The total value locked (TVL) on Nirvana fell to 7 cents in European morning hours following the attack. Its entire liquidity pool was effectively drained, data from DeFi Llama shows.
The 10 million USDC was returned to Solend after the exploit. The stolen funds were transferred to the Ethereum network using Wormhole, a blockchain tool that connects Solana to other networks, and converted to DAI, an Ethereum-based stablecoin, blockchain data shows. The attacker address -- 0xB9AE2624Ab08661F010185d72Dd506E199E67C09 -- currently holds over $3.5 million worth of DAI, blockchain data shows. Nirvana's trading functions were suspended by developers following the attack, as per messages by admins on the protocol's Telegram channel.
Nothing illegal here. (Score:5, Insightful)
You fancy yourself an ayn randian ubermensch cowboy? Go play with crypto. When your funds disappear in a second, you’re on you own. Fix it yourself. Nobody else’s problem.
Re: (Score:3, Insightful)
I really don't understand this sentiment. I am an actual libertarian / anarcho capitalist, I own very very little crypto, an insignificant amount, I own gold and silver bullion though, some stocks and I run a few businesses. What I want to know is why is it that when someone loses a bunch of crypto, a bunch of /. readers are coming out with statements like the one in the OP? I don't like crypto, I don't believe in crypto, never have, you can read my post from 2012 here [slashdot.org], I was pondering about how long a c
Re:Nothing illegal here. (Score:5, Insightful)
You say you run several businesses? I'll take you at your word. In that case, you're basing your income on a highly regulated system of laws, backed by a strong central government. You use that stability as the foundation on which to build your business to make money. In other words, you're a total anarchist until it comes to your own pocketbook, and then suddenly you're all about law, order, rules, regulations, and having cops around so that you don't get robbed/murdered/scammed. Of course, you loathe every penny that you pay in taxes that keep the roads from developing 4 ft. potholes and the sewers from explosively backing up into your premises. You want someone else to pay for that, while somehow claiming that YOURE the one being screwed. But, in my observations, consistency has never been the strong suit of this group.
I get the fascination with gold. It sounds like a great currency, if you ignore the massive explosion in economic activity and productivity that occurred AFTER the world abandoned the gold standard. Screw history and real data if it doesn't jive with your beliefs, amirite?
And that last part about currencies backed by corporations? Oh. My. God. Company scrip was even WORSE than crypto. You think it would be good for corporations to have that power over people? You're flat-out insane. If the company goes bust, the currency drops to zero. Single point of failure. There's a dozen good reasons that crap was abandoned a century ago.
Re: (Score:1)
I had this great business idea of taking other peoples stuff and selling it cheap to yet other people.
But the damn government put theses regulations in place to make it illegal. Said I was stealing. Stupid government.
Good that you don't want to follow those regulations. Where are your businesses again? I'll come pay a visit.
Mods at work. (Score:2)
"Mr. roman_mir, that is a lucid, intelligent, well thought-out objection... ...Overruled."
Re: (Score:1)
> if you ignore the massive explosion in economic activity and productivity that occurred AFTER the world abandoned the gold standard. Screw history and real data if it doesn't jive with your beliefs, amirite?
This is one possible interpretation of events. One other is that post ww2 rebuilding and subsequent growth required much more dollars than was possible to have when on the gold standard. And when ex-powers started betting that there were more dollars than the US had gold, the gold standard was aband
Re: (Score:1)
The underlying problem is that asset-backed currency is a mirage. We need more money than can be backed by any asset at its fair market value. As soon as you declare an asset to be currency, you distort its price relative to the fair market value.
Put another way, gold is only as valuable as it is because people think of it as money. If people gave up on the idea that gold is money, and the only demand for it were for its industrial uses*, the price would crash.
*Yes, I'm not counting jewelry. The main
Re: Nothing illegal here. (Score:2)
Re: (Score:3)
"I hate to break it to you, but precious metals have little intrinsic value also."
I don't know why people keep chasing that old canard around gold. Gold has been a carrier of wealth for at least 5100 years, and shows no sign of stopping. If anything with permanency has value, gold is probably it.
"Intrinsic value" nattering is just pointless. Maybe one day you'll be right and suddenly people will drop the current paradigm of gold... but you and I will be dead a gone before that happens.
Re: (Score:1)
I really don't understand this sentiment. ... I don't like crypto, I don't believe in crypto, never have, you can read my post from 2012 here, I was pondering about how long a currency that has no intrinsic value and is based solely on confidence can last.
I really don't understand why people keep insisting Bitcoin or crypto "has no intrinsic value".
Imagine you're a guy who wants to provide a service or sell a product via a simple website. Obviously you want people to be able to buy or pay your service over your website. How to do that the "normal" way? Setup an account with PayPal or some banking institution, give them all your personal data, give them your banking details, hope you are credit worthy enough to get a banking account in the first place (not a
Re: (Score:2)
Citation needed, since all I see is evidence that these problems haven't been solved with the extra steps of hard to recover transactions once fraud has been detected. Never mind fees are too high, how about you quote prices and two weeks later they need to be changed? How's that work for your
it's A SIMPLE, PRACTICALLY INSTANT INTERNET M
Re: (Score:2)
Read up. Watch the video. Learn some new stuff that matters.
https://academy.binance.com/en... [binance.com]
https://en.wikipedia.org/wiki/... [wikipedia.org]
https://crypto-wikipedia.com/w... [crypto-wikipedia.com]
https://www.youtube.com/watch?... [youtube.com]
Re: (Score:1)
Re: (Score:2)
"Just use WeChat"
Yeah. Like I'm going to trust an app of a Chinese conglomerate with my financial transactions and my personal data. LOL. No.
That thing won't come anywhere close to my mobile phone. I'd rather kill it with fire, burn my phone down and my hand along with it than install software of the Chinese Communist Party.
Re: (Score:1)
That is not what intrinsic value is, maybe your issue is that you are looking for some kind of value, but for some reason you want to assign a type of value to BTC (or other crypto currencies) that they cannot have intrinsically.
Intrinsic value is the type of value that is not attached to the use of the item as a currency, what is the value of BTC in itself? If there was no purpose for BTC in the world of payments, would BTC be valuable to people at all? Gold is a metal, it can be used as a unit of accoun
Re: (Score:2)
Your argument is that gold has intrinsic value because it is a physical object with physical properties. Yes, you could melt it down and create jewelry and use that to show off your status. I get that.
But just like gold has physical properties that Bitcoin lacks, Bitcoin has digital properties that gold lacks. You could share your Bitcoin wallet address with somebody and show off your Bitcoin wealth over the Internet. There are many means to prove it is really yours. You can't do the same with gold. You cou
Re: (Score:1)
You see, in the modern world it is possible to provide gold with properties that crypto currencies have. You can transfer your gold to anyone anywhere because gold is actually fungible, the reality is that bitcoins don't even possess the qualities that it used to be touted for, BTC is traceable, gold can actually be melted and reshaped.
Intrinsic value is the value of the item in itself, so gold will have value today and the same bar or coin will have value 1000 years from now. Even if this civilization de
Re: (Score:2)
Because the majority of self-proclaimed libertarians are all over crypto. Oh, and that includes (and I know this from personal knowledge, he having commented in a mailing list I'm on) ESR.
Re: (Score:2)
Your mother's Etsy quilting account does not count as running a business.
Re: (Score:2)
Selling tokens claiming that they are a safe investment when they are vulnerable to this type of exploit might be fraud though...
Re: (Score:2)
weird way of saying (Score:2, Insightful)
WTH? (Score:2)
That entire first sentence is nothing but word salad. Coherency is a lost art.
Re:WTH? (Score:5, Interesting)
It probably makes sense to people who eat, sleep, and breathe cryptocurrency, who are presumably the target audience. It would be nice if it were translated into ordinary English, but it's possible the explanation would be so long winded you couldn't last through it. This stuff is all immensely complicated. Some of that may be legitimate, but I suspect a lot of it is made needlessly complex to impress and confuse people who aren't in on the scam.
distilled to the fundamentals (Score:4, Informative)
Some people used computers, math, and money to set up a system in the hopes that other people would put their money into the system. In this scenario, the originators of the system would make some money off their work and invested resources. Fast forward and somebody used a flaw in the design of the system and took most of the money out of the system for themselves. The identity of this person is unknown and could very well have been the originator of the system and the supposed flaw may have been engineered into the system from the beginning.
Re: (Score:2)
yayyyyyy
Re: (Score:2)
A lot of it reminds me of a carnival shell game. This currency is pegged to this, wrapped with this, pre-mined, never had a death cross, etc.
I'm reminded of one of the best rules of investing, the crayon rule: If you can't scrawl out a product from the company you are investing in with a crayon, find something else.
Re:WTH? (Score:5, Funny)
A lot of it reminds me of a carnival shell game. This currency is pegged to this, wrapped with this, pre-mined, never had a death cross, etc.
I'm reminded of one of the best rules of investing, the crayon rule: If you can't scrawl out a product from the company you are investing in with a crayon, find something else.
Can I interest you in crayoncoin?
Re: (Score:2)
A lot of it reminds me of a carnival shell game. This currency is pegged to this, wrapped with this, pre-mined, never had a death cross, etc.
I'm reminded of one of the best rules of investing, the crayon rule: If you can't scrawl out a product from the company you are investing in with a crayon, find something else.
If you don't understand the source of yield, you are the yield.
Re: (Score:2)
Re:WTH? (Score:4, Interesting)
Nothing says crypto like a rugpull made up of other rugpulls.
Re: (Score:2)
Exhibit A: [zycrypto.com]
"NIRV is a decentralized reserve currency based on Solana that produces the ANA token, the protocol’s native token. The ANA token also serves as a store of wealth, not a store of value. ANA’s value is backed by a basket of reserves maintained by Nirvana in NIRV, which means that the token has an intrinsic value guaranteed by the reserves Nirvana holds.
Re:WTH? (Score:5, Informative)
It's straightforward but full of jargon.
10 cent version: a cryptocurrency exchange/savings-and-loan platform was buggy so an attacker created the illusion of money that didn't exist and then used that to steal real money from the other buggy code.
The people who loaned money to the people who wrote the buggy code are up probably up shit's creek.
They offered 100% YoY returns which is a great way to find greedy people who will engage in unwise risk.
The native token's value is getting nuked from orbit.
Caveat emptor.
Re: (Score:1)
caveat emptor
Yes and no.
Govt backed fiat money as we know it has been around for a long while and a large set of rules have grown up that attempt to stop people doing $bad_things with other peoples money whilst keeping the cost of transactions low.
The ultimate value of any one currency is the Govts ability to extract taxes from its plus what people believe.
Crypto has been around for a shorter while and a minimal set of rules have grown up that attempt to keeping the cost of transactions low. There is littl
Re: (Score:2)
Re: (Score:2)
All I get from this is, (Score:1, Insightful)
Re: (Score:2)
No matter how smart and clever you think you are, there is always someone smarter.
All I get is
Stablecoins **shakes head** ...when will people learn...
Hmmm (Score:2)
I'm too old for that headline (Score:3)
That's it, I'm too old to understand this. I've officially became my parents.
I admit I started to try to decipher the headline but lost interest after DeFi (Decentralized Finance)
Is Netflix DeVi?
Re: (Score:2)