Onchain asset manager kpk successfully protected its depositors from a $23 million exploit targeting the Resolv protocol’s stablecoin. The automated emergency system immediately halted allocations to affected yield vaults, preventing losses. kpk stated that all Ethereum funds were recovered with zero loss to its users, though the incident prompted a review of its security processes.
Onchain asset manager kpk says it shielded depositors from a $23 million exploit on the Resolv protocol. The firm was among several decentralized finance projects affected by the collapse of Resolv’s USR stablecoin.
kpk had vaults with limited exposure to Resolv’s RLP token. “When the risk was detected, we immediately set the risk tolerance on the affected market to zero and blocked new allocations,” the project stated.
An attacker minted approximately $23 million worth of Resolv’s USR stablecoin using minimal collateral, causing its price to plummet. They swapped the tokens for staked versions and then for USDC, creating significant volatility. The exploit sent ripples through interconnected DeFi protocols.
Other affected Morpho curators included Gauntlet, Re7 Labs, and 9summits. kpk’s automated system worked without manual intervention to manage the crisis. “Same block, no manual intervention needed,” the project explained.
The firm confirmed all Ethereum funds were fully recovered. “Zero loss to depositors,” it said in a post.
kpk is now implementing security improvements, including faster automation triggers and better alert integrations. The incident highlighted the risks inherent in DeFi’s interconnected systems. Deposits into kpk’s Ethereum yield vault have since resumed operations.
