USR stablecoin plummets after major exploit

USR stablecoin crashed after an exploit allowed minting of 80M unbacked tokens with $100K USDC, dropping its price to $0.025. Resolv Labs paused the protocol for recovery.

The USR stablecoin, developed by Resolv Labs, experienced a severe depeg from the US dollar after a critical exploit in its smart contract. An attacker exploited a vulnerability, depositing around $100,000 in USDC to mint up to 80 million unbacked USR tokens. This flaw in the protocol’s minting and swap functions caused USR’s value to collapse, with prices plunging to as low as $0.025 on some platforms. The attacker rapidly swapped the fraudulently minted tokens for assets like Ethereum and other stablecoins, draining liquidity pools and causing significant slippage. In response, Resolv Labs paused all protocol operations and is working on a recovery plan. Security experts cited possible causes such as oracle manipulation, compromised off-chain signers, or faulty validation mechanisms. The incident highlights persistent vulnerabilities in DeFi and stablecoin protocols.