🚨 $80M Stablecoin Exploit, and a reminder of how fragile this model really is Stablecoins don’t fail gradually, they fail all at once. Today, Cyvers detected a major incident at @ResolvLabs, where an attacker minted ~80M unbacked USR. No collateral was drained, this was pure supply inflation, and it immediately broke the peg. What actually happened: A flaw in the completeSwap() function allowed minting without proper validation. The attacker deposited roughly ~$100K–$200K and minted tens of millions in return. That’s a ~500:1 mismatch between supply and backing. What followed: • USR depegged sharply to ~$0.257, a ~74% drop • Liquidity drained quickly across pools • Protocols with exposure to USR or wstUSR started seeing impact On-chain activity: • Attacker: 0x04A288a7789DD6Ade935361a4fB1Ec5db513caEd • Mint transactions: https://etherscan.io/tx/0xfe37f25efd67d0a4da4afe48509b258df48757b97810b28ce4c649658dc33743 https://etherscan.io/tx/0x41b6b9376d174165cbd54ba576c8f6675ff966f17609a7b80d27d8652db1f18f • ~$23.8M has already been swapped into ETH, currently sitting at: 0x8ED8cF0C1c531C1b20848E78f1CB32fa5B99b81C • Funds are still being moved and split across wallets Team response: Resolv has paused all protocol functions and is working on recovery. Why this matters: This wasn’t a typical exploit. This was a minting failure, and for stablecoins, that’s the worst-case scenario. Once supply is no longer backed, the peg becomes unsustainable, and confidence disappears almost instantly. We’re already seeing second-order effects across integrated protocols. Cyvers is continuing to monitor the attacker flows in real time. If you want to safeguard your platform against incidents like this: https://calendly.com/d/cqjd-77h-r6x/cyvers-first-call?utm_medium=social&utm_source=twitter&utm_campaign=%22hakan #CyversAlert #Web3Security #Stablecoins #DeFi #CryptoHack(🚨 Cyvers Alerts 🚨)