Resolv’s USR stablecoin depegs after $80M exploit hits supply

Resolv’s USR stablecoin depegged following an apparent smart contract exploit on Sunday that allowed an attacker to mint 80 million USR tokens and dump them across decentralized exchanges, as noted by onchain analysts Ai Yi (@ai_9684xtpa) and PeckShield.

USR was rapidly destabilized, dropping to as low as $0.2 before recovering to around $0.8, according to CoinGecko.

In a statement, Resolv Labs, the core developer of the Resolv Protocol, said they had temporarily halted operations following the exploit. The team is investigating and taking steps to contain the situation.

USR is a 1:1 dollar-pegged stablecoin built by Resolv to operate entirely on-chain. Rather than holding fiat reserves, it maintains its value using over-collateralized crypto assets such as ETH, staked Ethereum, and Bitcoin.

RESOLV, the protocol’s native token used for governance and value capture, dropped 6% to $0.054 on the news.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.

Source: https://cryptobriefing.com/resolvlabs-usr-stablecoin-exploit/