Full show notes:
https://hackmd.io/@idegen/E9-Nomad-owned-Solana-wallets-hacked-8-4-2022

I, Degen - E9: Chaos In Crypto - Nomad Owned, Solana Wallets Hacked, Nirvance Finanace Crushed, & more - 8/4/2022

Listen at: idegen.fm

Contact us: @idegenfm

Intro

Welcome to I, Degen - We track down and explore the most exciting crypto hacks, mysteries, exploits, and anything that feeds our crypto curiosity each week. We dig in, cutting through the misinformation and hype in search of signal from the noise.

Episode Summary

The word of the week is chaos. From the first-of-its-kind decentralized looting mob destroying Nomad to the mysterious draining of more than 8K Solana wallets, it’s been a crazy week. Sadly, there is more.

**Quick word on signal **

I,Degen - Weekly

1. Reaper Finance - FTM based hacked for 1.7MM Audit, Significant code update, no audit, owned.
2. The SEC is accusing 11 individuals of running the Forsage Ponzi that generated more than 300 million from users on several blockchains (ETH, BNB,Tron) https://defi-planet.com/2022/08/officials-of-forsage-crypto-accused-of-running-a-300-million-ponzi-scheme/
3. Two founders pled guilty to securites fraud from a 2017 ICO called “Dropl” for scamming users out of 1.9 million. The founders were sentenced to 2.5 and 3 years for their crimes (https://coinfomania.com/two-men-bag-three-years-in-prison-ico-fraud/)
4. A bill reaches the Senate that would classify Bitcoin and Ethereum as commodities and put their regulation under the CFTC. (https://www.wsj.com/articles/senate-plan-would-put-bitcoin-ether-under-commodity-regulators-watch-11659499261)
5. Texas based mining firm Riot Blockchain earned 9.5 MILLION in credits after agreeing to temporarily shut down their mining operation during a recent heat wave and power struggles. (https://www.bloomberg.com/news/articles/2022-08-03/bitcoin-miner-made-millions-by-shutting-rigs-during-texas-heat)
6. Nirvana Flash Loan Attack - mini deep dive

What is Nirvana? Buddhist state of bliss? Iconic 90’s band? Nope in this context, Solana Based Yield Protocol (what even is a ‘yield protocol’?). Also, a stablecoin.

@Huntfrye Nirvana Finance, a Solana-based yield protocol. Nirvana allowed users to earn annual yields on their locked assets by creating and destroying tokens based on user demand as the ANA tokens were bought from and sold to the protocol.

Looks pretty similar to some other algorithmic coins that rebase or change supply daily due to demand

Is this Similar to the Beanstock flash loan attack we talked about on I Degen a few episodes back?

• Hacked for 3.5 MM using FlashLoans

What’s a Flash Loan?

The loans enable merchants to obtain unsecured loans from lenders using smart contracts in place of intermediaries. No collateral is required because the contract only considers the transaction complete when the borrower pays the lender.If a borrower fails to repay a flash loan, the smart contract will halt the transaction and repay the lender’s money. –