Flash Loan Exploit Drains Liquidity From Nirvana Finance

  • Hacker used a flash loan attack to manipulate and drain Nirvana’s liquidity pools, causing the protocol to lose $3.49 million in digital assets.
  • Shortly after the attack, which used a flash loan from Solend, both Nirvana’s native token ANA and NIRV stablecoin fell in price by over 80%.


Solana-based decentralized finance (DeFi) yield protocol Nirvana Finance has fallen victim to an exploit, which saw the project lose $3.5 million from its treasury, the team behind the protocol said via Twitter on 28 July.

According to the announcement, a hacker used a flash loan — a way to borrow large amount of funds at low cost, given that the loan is repaid in the same network block — from Solend to manipulate and drain Nirvana’s liquidity pools. Through this exploit, the attacker was able to steal $3.49 million worth of digital assets from the project’s treasury, which were then bridged to Ethereum through Wormhole and converted into DAI tokens. DeFi lending app Solend said it was aware of the exploit:

Blockchain data shows that the attacker minted $10 million worth of ANA tokens, which he then used to inflate the price of the token by manipulating Nirvana’s oracle feed. The tokens were then swapped for $13.49 million USDT, with $10 million being used to repay the initial loan, and $3.49 million going to this address.

Since the incident, the protocol’s native ANA token fell by over 85% in price, while the project’s NIRV stablecoin lost 90% of its U.S. dollar peg. Nirvana’s team is still investigating the attack, and has warned users to be “very careful with trading NIRV & ANA, as they currently have no guaranteed value”.

Flash loan attacks have become a popular way for hackers to exploit DeFi platforms and systems. Back in April, an attacker used flash loan to pass two governance proposals on Beanstalk which lost the protocol $182 million of total value locked. The same month, another attacker used a similar exploit to Nirvana’s to steal $13.4 million from Deus Finance.

Related Coverage
Slope Wallet Likely Tied to Solana’s Exploit
  • Solana developers claimed an investigation found no evidence that the protocol or its cryptography were compromised in the widespread exploit.
  • The investigation, however, discovered that the affected wallets were either “created, imported, or used” in Slope’s mobile app at one point in time.
a day ago


Millions Drained in Widespread Solana Wallet Exploit
  • Multiple people took to Twitter on Wednesday to report funds being drain from their Solana-based wallets, including Phantom, Slope, and TrustWallet.
  • Although it is a widespread Solana exploit, with around 8,000 wallets being compromised, its root cause remains unknown.
Nomad Token Bridge Suffers $190M Security Exploit
  • Hundreds of addresses were involved in the $190 million exploit, and Nomad believes that at least some of them were white hat hackers.
  • Researcher for Paradigm has speculated that the exploit was caused by a recent update to one of Nomad’s smart contracts.