A few days after the exploit that saw over 80 million USR tokens minted, Resolv is keeping true to its commitment to what it termed the first phase of recovery, as it announced that it has redeemed over 90% of the allowlisted pre-incident holders.
Fluid confirmed approximately $70M in USR-related debt has been repaid, with other platforms like Midas and Gauntlet containing their exposure and planning compensation.
How far has Resolv’s compensation effort actually reached?
In an update shared on X today, Wednesday, March 25, Resolv Labs wrote, “Over the past 2 days, $77M+ has been redeemed for allowlisted wallets with pre-exploit USR, representing 90%+ of this group and marking strong progress in phase one of recovery.”
It stated that the next actions are to complete the current round of redemption and work on subsequent recovery phases covering the remaining user groups.
DeFi lending platform Fluid, which had previously mentioned that Resolv agreed to cover all USR positions that came before the security incident, confirmed that approximately $70 million of USR-related debt on its BNB and Plasma chains had already been repaid, with a governance proposal published on-chain to transfer remaining positions to a team multisig for final settlement with Resolv.
Fluid wrote, “A compensation plan for all affected USR users will be shared shortly,” while adding that “all Fluid markets are safe and operate as intended.”
Midas, the tokenized real-world asset platform that had paused instant redemptions for mAPOLLO as a precaution, was also able to draw a line. The protocol confirmed that mAPOLLO had redeemed its USR position in full, while mBASIS and msyrupUSDp, which had no direct USR exposure, withdrew their Fluid allocations on Plasma as a precaution. The platform stated that token prices will be updated and instant redemptions will resume once NAV reports are received from its strategy managers.
Other affected platforms, such as Gauntlet, have also mentioned that they are working on a compensation plan.
How is USR faring since the exploit?
Despite Resolv’s efforts over the past few days, USR, which is meant to be a collateralized stablecoin pegged to the dollar, is still far below its pre-exploit value, and to date, the attacker has yet to respond to a 72-hour ultimatum to return 90% of the $25 million in converted funds.
USR price has steadied after a 38% gain in the last 24 hours. Source: CoinMarketCap.The ultimatum expires after Thursday, March 26, after which Resolv says it will escalate the issue, including pursuing legal actions.
Currently, USR is trading around $0.31 per CoinMarketCap. The token has shown small signs of life in the last 24 hours, with the current price being an increase of over 38.8%. Since the exploit was announced, the market capitalization of USR has declined further from around $78 million to $55.2 million.
For now, Resolv Labs is focusing on redemption and regaining the lost funds; however, it will also need to take drastic actions to restore the fortunes of its stablecoin sooner, but how soon that happens remains to be seen.
Source: https://www.cryptopolitan.com/resolv-usr-steadies-first-recovery-phase/
