Resolv Labs Pauses Protocol After $23M Exploit Triggers USR Stablecoin Depeg

Resolv Labs has paused its protocol after a major exploit led to the depegging of its USR stablecoin, following an attack that extracted roughly $23–25 million in value.

The breach allowed an attacker to mint tens of millions of unbacked tokens, flooding the market and destabilizing the stablecoin’s $1 peg. The attacker reportedly deposited a small amount of collateral and minted up to 80 million USR tokens. Which were quickly swapped into other assets like USDC and ETH. The sudden surge in supply caused USR to collapse sharply, with prices plunging far below its intended value within minutes.

In response, Resolv Labs halted all protocol activity to contain the damage and is working on a recovery plan. The incident highlights ongoing risks in DeFi systems, particularly around smart contract vulnerabilities and token minting mechanisms. Which can rapidly trigger liquidity crises and stablecoin failures.

Clever Robot News Desk 23^th March 2025