Resolv Labs USR Stablecoin Collapses 74% Following Revised $25 Million Exploit

Key Facts

Resolv Labs has paused its DeFi protocol following a catastrophic collapse of its USR stablecoin, which lost 74% of its value. Updated reports have revised the total financial impact to approximately $25 million after the attacker minted 80 million unbacked USR tokens. The security breach was traced to a privileged minting role controlled by a single externally owned account (EOA) that lacked mint limits or oracle checks. This vulnerability allowed the attacker to generate a disproportionate amount of USR tokens with minimal collateral, leading to an immediate depegging from the dollar. The incident has resulted in significant losses for liquidity providers and renewed concerns over security standards within the DeFi ecosystem. The protocol remains halted as the team works to contain the breach and investigate the full extent of the damage.