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ID:

nirvana-finance-1000

Date:

Status:

Incident Count:

July 28, 2022

Verified

1

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REKT

Contributor:

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web3rekt.com

KYC By:

KYC:

No

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Audit By:

Audits:

Sec3

Loss Amount:

3,490,000

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Recovered:

-

Rewards:

Currency:

USD, ANA

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Key Indicators

Platform:

Type:

Category:

Method:

Data Sources:

Solana

Assets

Token

Flash Loans

Extended Method:

Logic error

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Days in Operation:

308

(0.84 Years)

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Nirvana is designed to prevent hyper-inflation. It is an antidote to investment assets that boom sharply in price and then swing suddenly down from the heights. The protocol and its liquidity are oriented towards supporting the price of ANA (see the chapter on price support). This priority will result in modest appreciation, and modest APYs for stakers. But the value will be reserved to support the price of the token during market downturns.

ANA is meant to be a low-risk investment that appreciates steadily and reliably. NIRV is meant to be an ultra-low-risk store of value -- one that can absorb the de-pegging of individual stablecoins.

The adaptive yield protocol was exploited for $3.49M. Attacker borrowed $10M USDC from Solend protocol and minted $10M of ANA token.

According to Beosin, at the time according to the swap ratio, USD/ANA is 8.72. After the swap the price is 24.27, the price before/after is about 1/3. The hacker then calls swapinstruction two times and swaps the obtained $ANA into USD, which drops to 22.73 and 16.47 respectively. The gains are the profits from the price swing.

From that he swapped that for $3.5M of USDT from Treasury and returned $10M USDC to the Solend.

Via Wormhole he tranferred the USDT to an ETH account as DAI.

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