Solana’s income farming protocol, Nirvana Finance, was hacked using instant loans. The attackers withdrew $3.49 million worth of digital assets from the project treasury.

“The Nirvana protocol has been abused today. “The developers are investigating the attack and will make an announcement to the community shortly.”

According to blog explorer Solana.fm, hackers used an instant loan of 10 million USDC on the Solend platform to manipulate the protocol’s price prophecy. The funds allowed the ANA project to issue a large number of utility tokens, valued at more than $10 million, as a result of these actions.

According to DeFi Llama, just over $3.5 million was locked in the project’s smart contracts in ANA prior to the attack (excluding stake).

At an “inflated” price, the attackers launched an exchange of utility tokens in USDT for $13.49 million. Since the protocol deemed asset issuance legitimate, it freed liquidity from Nirvana’s treasury.

After receiving the funds, the hackers paid off the debt on Solend and pulled the remaining amount into the Ethereum network via the Wormhole bridge.

According to CoinGecko, the attack caused the value of ANA to drop 78% to $1.96. The algorithmic stablecoin of the NIRV project has lost its peg to the US dollar – the asset is trading around $0.18.

Recall that according to Immunefi, in the II quarter of 2022, the total loss of crypto projects from hacking and fraud was $ 670,698,280.

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