Resolv Labs’ Stablecoin USR Loses Dollar Peg Following Exploit
- An attacker minted over 80 million unbacked Resolv USR (USR) tokens, causing the stablecoin to lose its peg to the US dollar.
- The exploit occurred after depositing $100,000 worth of USDC, allowing minting of 50 million USR initially.
- Following the attack, USR traded as low as 2.5 cents before recovering to around 87 cents, approximately 13% off its $1 peg.
- The attacker reportedly extracted around $25 million by converting minted tokens into stablecoins and then into Ether (ETH).
- Resolv Labs has paused all protocol functions to address the security breach and prevent further exploitation.
This incident highlights vulnerabilities in smart contracts, with D2 Finance suggesting potential issues with the minting function or oracle manipulation. The rapid cashout strategy employed by the attacker reflects ongoing risks in decentralized finance (DeFi) protocols.
Currently trading at about 87 cents, Resolv USR’s depeg underscores significant concerns regarding its stability after such a large-scale exploit.(Source)
