The stablecoin Resolv USR (USR) lost its $1 peg after an attacker exploited its smart contract to mint at least 80 million unbacked tokens, worth approximately $25 million. The protocol Resolv Labs confirmed it paused all functions to prevent further malicious actions, while on-chain data revealed the attacker swapped the fraudulent tokens for other assets, causing the stablecoin’s price to crash as low as 2.5 cents.
A stablecoin tied to the crypto project Resolv Labs has lost its peg to the US dollar after an attacker exploited the token’s contract. Resolv Labs stated the exploit allowed the minting of 50 million unbacked USR tokens.
On-chain data showed the attacker minted 50 million USR by depositing $100,000 worth of USDC. The security firm PeckShield reported an additional 30 million USR were minted.
The crypto fund D2 Finance said the minting function on USR’s contract was broken. “Either the oracle was gamed, the off-chain signer was compromised, or the amount validation between request and completion is simply missing,” it added.
D2 Finance detailed that the attacker moved the tokens across multiple protocols to swap for stablecoins and Ether. The firm noted “The attacker’s exit playbook is textbook DeFi hack cashout running at full speed.”
D2 Finance estimated the attacker extracted around $25 million as USR’s price plummeted. The stablecoin traded as low as 50 cents on some swaps amid worsening liquidity.
According to CoinGecko, USR is currently trading around 87 cents. Its most liquid pool on Curve Finance showed a flash crash to 2.5 cents.
The exploit follows a broader decline in crypto-related hacks in February. Approximately $49 million was lost to exploits that month, compared to $385 million in January.
