A recent exploit of the USR stablecoin's minting system has sent shockwaves through the decentralized finance (DeFi) ecosystem.
An attacker successfully exploited the system, generating approximately 80 million tokens without collateral backing. This sudden oversupply pushed the value of USR to a low of $0.14, an 86% drop from its intended peg of $1.
Resolv Labs, the team behind USR, quickly paused protocol functions after identifying the exploit and posted on X that the collateral pool backing USR remains fully intact.
Cyvers vice president Michael Pearl explained that the exposure was relatively concentrated in lending markets and leverage positions. He noted that the affected protocols primarily included those that had integrated USR, wstUSR, or RLP into lending, leverage, or yield products.