Resolv’s USR stablecoin experienced a sharp breakdown after an attacker minted around $80 million worth of unbacked tokens. The price quickly fell from its $1 target to as low as $0.25, with even deeper drops in certain liquidity pools.
The incident caused immediate disruption across the protocol and led to heavy losses for holders, as the excess supply flooded the market within a short period.
Analysts pointed to weaknesses in the protocol’s design, including insufficient validation checks and reliance on a single externally controlled wallet for a key administrative role. The smart contracts had previously been audited, but the vulnerability remained undetected.
Resolv Labs paused all protocol operations shortly after identifying the exploit. The team stated that the underlying collateral pool remains intact and that no backing assets were directly stolen.