Resolv's USR stablecoin lost its dollar peg and crashed 72% to $0.27 after an attacker exploited a flaw in the protocol's minting contract to create roughly 80 million unbacked tokens and extract approximately $25 million in Ether (ETH), leaving the project functionally insolvent with $95 million in assets against $173 million in liabilities.
Minting Contract Exploit
The attack occurred around 2:21 a.m. UTC on Sunday, when the exploiter used two transactions to mint approximately 80 million USR tokens without proper backing, according to multiple blockchain security firms and on-chain data.
The attacker then swapped the minted USR for USDC (USDC) and USDT (USDT) on decentralized exchanges, converted the proceeds to ETH, and now holds 11,409 ETH worth about $23.7 million plus $1.1 million in wrapped USR in a separate wallet.
USR, a dollar-pegged stablecoin that relies on a delta-neutral hedging strategy backed by ETH and Bitcoin (BTC), dropped to $0.025 on its most liquid Curve Finance pool within 17 minutes of the first mint.
It later recovered to around $0.85 but has not restored its peg.
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Structural Design Failures
On-chain analysts found the underlying cause went beyond what Resolv initially described as a "compromised private key" and "targeted infrastructure compromise."
The SERVICE_ROLE, a privileged account that completes swap requests in the minting contract, was controlled by a single externally owned account rather than a multisig. The contract had no oracle checks, no amount validation, and no maximum mint limits — allowing the attacker to deposit 100,000 USDC and receive 50 million USR in return, roughly 500 times the expected amount.
Recovery Prospects
DeFiLlama data shows Resolv's total value locked peaked near $684 million in Feb. 2025 before declining to around $95 million prior to the exploit.
Resolv said it was working with law enforcement and on-chain analytics firms and would "pursue all available avenues to recover assets." The team strongly advised against trading USR while recovery measures are being implemented, adding that "actions of users during post-exploit period may affect the recovery."
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