Key Highlights
An attacker exploited Resolv’s USR issuance flow to mint about 80 million unbacked tokens with minimal collateral.
The exploit drained roughly $25 million in value and pushed USR sharply off its $1 peg.
Resolv paused protocol functions and said the collateral pool remains intact, while connected DeFi platforms moved to limit exposure.
Resolv Labs’ USR stablecoin lost its dollar peg after an attacker exploited the protocol’s issuance mechanics to mint about 80 million unbacked tokens and extract roughly $25 million in value. Public reporting says the attacker used minimal collateral, then sold the newly minted USR across liquidity pools, leaving holders and LPs exposed as the token plunged.
USR is Resolv’s dollar-pegged stablecoin designed to maintain a 1:1 value with the U.S. dollar entirely on-chain. Instead of relying on fiat reserves in a bank account, it is backed by an over-collateralized mix of crypto assets, including ETH, staked ETH, and Bitcoin.
The exploit appears to have hit the contracts tied to USR minting and swapping. The attacker deposited less than $200,000 in collateral, minted tens of millions of USR, and quickly cycled the proceeds into assets including USDC, USDT, and ETH. On-chain tracking cited in coverage showed a large share of the extracted value was moved into Ether.
USR’s peg broke immediately under the selling pressure. The token fell to about $0.14 before partially recovering. The move hit users who treated USR as a stablecoin, leaving some liquidity providers holding a sharply devalued token.
Resolv paused protocol functions after the incident and confirmed that the collateral pool backing USR remains intact, with the issue isolated to issuance mechanics. Other DeFi platforms with exposure moved to pause markets, isolate vaults, or clarify that their direct exposure was limited.
