Hacker Mints $80M USD Worth of USR Stablecoins

5 hours ago

A hacker exploited Resolv Labs’ smart contract, minting $80 million in unbacked USR stablecoins.
USR stablecoin crashed to $0.025 (2.5 cents) within hours, with an 80% de-peg similar to Terra Luna’s UST.
Only $25 million was siphoned by the hacker; $55 million was locked by the protocol after detection.
The hacker converted the $25 million into Ethereum (ETH) via an unidentified DeFi platform.
USR’s price dropped from $1 to $0.2 within 24 hours due to the unexpected minting.
Recovery chances for USR are low as stablecoins rely on trust, which is lost after significant de-peg.
Unbacked stablecoins lack fiat or asset reserves, relying on algorithmic models instead.
Asset-backed stablecoins (e.g., fiat or gold-backed) hold equivalent reserves to back their value.

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