Gate News, March 23 — Resolv’s stablecoin USR experienced a major security breach. An attacker exploited a private key leak to infiltrate the protocol infrastructure, illegally minting approximately $80 million worth of uncollateralized tokens, directly impacting the system’s solvency. Following the incident, USR’s price plummeted from its $1 peg to around $0.27, a decline of over 70% in one week.
Resolv Labs has paused the related smart contracts and burned about 9 million tokens, but approximately 71 million USR tokens remain in circulation without collateral. Unlike typical smart contract vulnerabilities, this breach was at the key management level, making it difficult for traditional audits to prevent, and the risk is more severe.
Currently, the total USR supply is about 173 million tokens, with only around $95 million in protocol assets remaining. The collateralization ratio has dropped to 55%, well below safe levels. Using a whitelist priority redemption mechanism, early holders could theoretically recover about 93%, but later users face higher loss risks.
On-chain data shows USR prices fluctuated wildly between $0.14 and $0.82, with daily trading volume reaching $8.4 million, reflecting extreme market confusion. Meanwhile, Resolv’s TVL has declined from a peak of $684 million in 2025 to about $95 million, with the protocol’s revenue model essentially broken.
Ledger CTO Charles Guillemet noted that this incident could create bad debt risks in some lending markets, especially as funds using USR as collateral are already showing signs of withdrawal.
Resolv stated that the underlying assets were not directly stolen; the attack originated from an external infrastructure breach. Authorities are currently tracking the flow of funds. The team also warned that trading USR during this period could affect subsequent claims processes.
This incident once again exposes the vulnerabilities of stablecoins in infrastructure security, collateral transparency, and extreme market conditions, posing a new challenge to market trust in DeFi stability mechanisms.
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