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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 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 On Thursday, July 28th, the Solana-based yield protocol suffered a $3.5 million exploit. The hacker took advantage of a vulnarability which allowed them to carry out Nirvana, the Solana-based stablecoin, is reported to have suffered a flash loan attack, leading to a loss of close to $3.5 million. According to the on-chain blockchain Nirvana Finance, a decentralized finance (DeFi) yield protocol on Solana, has suffered a flash loan exploit to the tune of about $3.5 million, according to PeckShield.

Solana-Based Stablecoin NIRV Plunges 90% After $3.5 Million Flash Loan Attack

The Solana ecosystem has suffered another blow. Solana-based algorithmic stablecoin NIRV has become the latest stablecoin to fail after dropping significantly – experiencing drops near 90% – from its United States dollar peg following a hack on adaptive yield protocols. This incident highlights the ongoing vulnerabilities within the DeFi space, particularly concerning flash loan attacks.

Nirvana Finance Exploited: A Deep Dive into the Solana Hack

On Thursday, July 28th, Solana-based decentralized finance protocol Nirvana Finance confirmed on Twitter that it suffered a flash loan attack for USD 3.5 million. According to on-chain blockchain data and cybersecurity firm PeckShield, Nirvana Finance, a decentralized finance (DeFi) yield protocol on Solana, has suffered a flash loan exploit to the tune of about $3.5 million.

The hacker took advantage of a vulnerability which allowed them to carry out a highly profitable attack. On Thursday, July 28th, the Solana-based yield protocol suffered a $3.5 million exploit, further destabilizing the already volatile stablecoin market.

How the Flash Loan Attack Impacted NIRV

Nirvana, the Solana-based stablecoin, is reported to have suffered a flash loan attack, leading to a loss of close to $3.5 million. This immediate impact triggered a dramatic de-pegging event, with NIRV plummeting over 85% against the US dollar. The rapid devaluation underscores the risks associated with algorithmic stablecoins and their susceptibility to exploits.

Lessons Learned from the NIRV Flash Loan Incident

The Nirvana Finance flash loan attack serves as a stark reminder of the importance of robust security audits and proactive vulnerability management within DeFi protocols. As the Solana ecosystem continues to grow, developers and investors must prioritize security to prevent future exploits and protect user funds. This recent event showcases the inherent risk in algorithmic stablecoins, and how a $3.5 million flash loan can drop the price of a Solana based stablecoin by almost 90%.

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