GoKawiilA hacker has exploited Resolv Labs’ smart contract, where it was able to mint at least $80 million worth of USR stablecoins.
As a result of the hack, USR crashed to $0.025, i.e., 2.5 cents, within hours. The stablecoin is unlikely to emerge after an 80% de-peg similar to Terra Luna’s UST.
However, the hacker was only able to siphon off $25 million; the rest was locked into the protocol after system admins got alerted.
The $25 million funds were quickly converted into Ethereum (ETH).
Summary of the Hack
A hacker was able to exploit a bug function in the smart contract of Resolv Labs, which led to the hacker minting fake (unbacked) Resolv USR stablecoins.
However, the systems were soon alerted, and the protocol locked all transactions. Out of the falsely minted $80 million, around $55 million was apprehended by the protocol, which
The hacker was then able to siphon $25 million in stablecoins and quickly exchange them for ETH via an unidentified DeFi platform.
As a direct result of the unexpected mint, USR, which had a circulation of about 400 million tokens, had an unexpected fall. The crash took the USR price from $1 to $0.2 within the first 24 hours of the hack. Although the protocol has scaled back $55 million of the hacker minted stablecoins, they are unable to combat user loss.
Resolv USR Price Before and After the Hack
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