At noon today, Beijing time, Nirvana, a decentralized algorithm-based stablecoin protocol based on Solana, was attacked. The price of its stablecoin NIRV once fell from US$1 to US$0.09, and now rebounds to US$0.11, with a maximum drop of more than 90%. 8.9 US dollars once fell to 1.5 US dollars, a drop of up to 85%.

When the user sells ANA in the agreement, it shows insufficient liquidity, and because it does not support conversion into other assets, it can only be converted into the system's own stable currency NIRV. Moreover, the price of NIRV has plummeted sharply, and the price of ANA on the website page is also seriously deviated from the market price.

Regarding the specific cause of the attack, the official announcement has not yet been made (it is late at night overseas), and community members have two conjectures: flash loan attack, and loopholes in the protocol itself.

twitter user@AndyBTCThe article stated that hackers attacked Nirvana through flash loans, which drained the protocol fund pool and lost 3.5 million USDC; currently, the hackers have cross-chained the funds to Ethereum through the wormhole protocol and converted them into DAI (not supervised) , hacker address:0xB9AE2624Ab08661F010185d72Dd506E199E67C09. Of course, some community users pointed out that there may be loopholes in the protocol, which could be exploited by hackers. They hope that the team can strengthen code review in the future.

"My friends, believe me, it's stressful for me too, because you guys put money into it. We, the team, and the mod put in time, effort, and money. I don't think it's going to be the end, but we'll have to wait Team (make the next move).” Asita, Discord administrator of the “Nirvana” community, comforted users.

"Nirvana" is an algorithmic stablecoin protocol based on the Solana blockchain network, designed to prevent hyperinflation. The project adopts a dual-token system: ANA, an algorithmic metastable token, used as a store of wealth; NIRV tokens generated by ANA as collateral, which is a decentralized super stable currency, used as a store of value . Specific principles, recommended reading"Interpretation of Solana Algorithm Stablecoin "Nirvana" with Zero Liquidation Risk"

The feature of this project is that it supports ANA reserve price recovery. Specifically, when the market price of ANA falls below the recovery price, users can sell their ANA to the agreement at the reserve price; and the reserve price will continue to increase as the market price rises.

Before the attack, the base price of ANA was $6.92, while the market price was $8.9, and the circulation was 2.2 million. This also means that the treasury must have an asset reserve of more than 15 million (2.2 million * 6.92) in order to guarantee normal redemption.

But at present, the liquidity of the treasury has been severely drained, Odaily query found that,Treasury address (click to jump)At present, there are only 14,000 USDC, 6.8 million NIRV stablecoins (valued at 634,000 US dollars), and 2.24 million ANA tokens (valued at 2.66 million US dollars), and the rest of the stable coins USDT, DAI, and USDH have been exhausted; the remaining assets of the treasury are only 3.3 million Dollar.

Overall, in order to support the reserve price repurchase, "Nirvana" currently has an asset gap of more than 12 million US dollars. Such enormous financial pressure was almost a death sentence for a nascent project. If "Nirvana" wants to survive, it may follow the example of competing Beanstalk Farms for crowdfunding.

In April of this year, Beanstalk Farms, a decentralized stablecoin protocol, suffered a flash loan attack and lost about $77 million. In June of this year, Beanstalk Farms launched the fundraising event "The Barn Raise", and will issue a total of 10,000 NFTs to users who donate more than $1,000; as of July 13, a total of $11 million has been raised. Although the funding gap is still relatively large, the current activities are still continuing, which has also released confidence to the outside world.

Odialy will also continue to pay attention to the latest developments of the "Nirvana" incident.