Resolv Pauses Protocol After $80M USR Stablecoin Exploit
Resolv has halted its protocol after an attacker exploited a vulnerability to mint roughly 80 million unbacked USR tokens, causing the algorithmic dollar stablecoin to collapse to about $0.24. The emergency pause stopped on-chain operations as the team and external forensics begin an investigation into how the minting occurred and whether additional contracts were affected.
The incident highlights persistent fragility in algorithmic and undercollateralized stablecoins and raises fresh concerns about contagion risk for holders and linked products. Market participants and regulators will be watching for remediation plans, possible reimbursements, and audit findings; for users this underscores the importance of counterparty risk assessment and the limits of trustless assumptions in some stablecoin designs.