Resolv Labs' USR Stablecoin Exploited, Decentralized Finance Protocols React

Resolv Labs' USR stablecoin has been hit by an exploit, causing its price to plummet 86% below its intended peg of $1. According to data from CoinGecko, the token dropped as low as $0.14 before rebounding to $0.42 at the time of writing.

The attacker exploited USR's minting mechanics, creating tens of millions of unbacked tokens and dumping them through DeFi pools. The company has paused protocol functions while it assesses the damage, but assures users that its collateral pool 'remains fully intact.'

Decentralized finance protocols with exposure to Resolv have moved quickly to contain the fallout. Lido, Morpho, and Aave have all clarified their positions, with some pausing markets or isolating vaults as a precautionary measure.