NIRV, an algorithmic stablecoin based in Solana, has dropped 85% from its dollar peg as a result of a hack on the adaptive yield system Nirvana Finance, making it the most recent stablecoin to fail.
Tether (USDT) worth $3.5 million was lost as a result of the flash loan attack, which also caused Nirvana Finance’s native token ANA to decrease by 85%. The SolanaFM team was the first to confirm that the funds were syphoned out via a flash loan attack.
It is confirmed on Nirvana’s website that the protocol was deliberately compromised and that reserve funds were taken. NIRV and ANA no longer have their collateral, and their market value is unsecured.
The hacker is reportedly being offered a $300k whitehat bounty by the Nirvana team in exchange for ending the probe into their identity. The hacker’s wallet connected to a centralised exchange has been detected, according to what they have so far disclosed.
The protocol unironically refers to the algorithmically collateralised NIRV as a superstable token. Through a decentralised peg delegation, the asset is backed by a network of stablecoins in Nirvana’s reserves.
After a third party has compromised the company’s client data, depositors of Celsius should be on the alert for phishing scams.
According to experts, cryptocurrency mining might still be profitable if we consider its long-term possibilities. Some believe that the lower production costs will have a negative impact on asset prices even though they may lessen the selling pressure from miners.
The water cooling features of the most recent Antminer devices were commended by the mining specialist. If this norm persists, according to Bassi, cooling will be more effective, and only miners who have previously made plans for liquid cooling will be able to compete.
The change was made as Ethereum developers announced a possible date for the merge, which would end the time-consuming proof-of-work (PoW) mining process.
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