A Stablecoin Lost Its $1 Peg, and Its Price Dropped to Nearly Zero

Another stablecoin crisis has hit the cryptocurrency market. USR, a stablecoin issued by ResolvLabs, experienced a significant drop in value following a suspected security exploit. According to on-chain data, one address minted 50 million USR using only about 100,000 USDC. This unusual transaction caused a sharp decline in the price of USR.

Following the incident, USR quickly lost 74.2% of its value, falling to $0.257. It later showed a partial recovery, rising to approximately $0.78. At the time of writing, it has fallen by 93% daily, trading at $0.06. The token was originally supposed to be pegged at $1.

The graph shows the decline in USR price.

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It was also determined that the attacker began converting the funds obtained into different assets. According to current data, the attacker has purchased approximately $4.55 million worth of ETH so far. Blockchain security firm PeckShield stated that a total of approximately $80 million worth of USR may have been minted.

On the other hand, Aave, one of the leading protocols in the DeFi ecosystem, also issued a statement on the matter. The Aave CEO argued that despite the USR depeg process, the protocol has no exposure to ResolvLabs USR.

*This is not investment advice.

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