Resolv Labs' Stablecoin USR Collapses After $23 Million Exploit

The decentralized finance (DeFi) space has suffered a significant blow with the collapse of Resolv Labs' stablecoin USR. The token lost approximately 80% of its value after an exploit took place on March 22.

The attack used compromised private keys to mint around 80 million unbacked USR tokens, which were then sold on decentralized exchanges. This triggered a heavy sell-off, causing the price to crash within hours and resulting in losses across multiple DeFi platforms.

A two-step process was employed by the attacker, who first requested token minting and then completed the process without sufficient collateral. This flaw allowed for massive over-minting, highlighting a deeper issue with access control and security.