Resolv Labs’ USR Stablecoin Crashes After Hacker Mints $80 Million Tokens

Resolv Labs has suffered a major exploit that caused its USR stablecoin to completely lose its dollar peg.

According to on-chain analysis and the project’s official statement, an attacker exploited a critical vulnerability in the USR minting mechanism. Using only approximately $200,000 USDC, the hacker was able to mint around 80 million unbacked USR tokens - creating roughly $80 million in synthetic supply out of thin air.

The attacker quickly swapped the majority of these tokens for real assets (primarily ETH, USDC, and USDT), successfully draining an estimated $23–25 million in actual value from the protocol’s liquidity pools.

As a result, USR plunged from its $1 peg to as low as $0.14–$0.25 (with some reports showing dips as low as $0.025 on Curve), representing a catastrophic depeg. The token has since partially recovered to approximately $0.40–$0.45 amid high volatility.

Resolv Labs reacted swiftly by pausing all protocol functions. In their announcement, the team confirmed that the underlying collateral pool remains fully intact and that no backed assets were directly stolen. They stated they are actively investigating the incident and working on recovery efforts.

This exploit highlights the persistent dangers in DeFi stablecoin designs, especially those using complex yield and minting logic (the vulnerability was in the two-step RequestSwap > CompleteSwap mechanism).

Users are strongly advised to avoid trading or interacting with Resolv assets until the team provides further updates.