A suspected minting flaw at Resolv let an attacker turn 200,000 USDC into 80 million USR, then cash out through a series of swaps. The on-chain incident hit USR hard, sending the stablecoin as low as $0.257 and breaking far below its intended $1 peg.
The exploit path moved from USR minting to ETH accumulation
According to on-chain tracking platform Onchain Lens, the operation unfolded in three clear stages. First, the attacker triggered the minting flaw and obtained 80 million USR at a highly abnormal rate, roughly equivalent to 400 USR for every 1 USDC. That ratio points to a serious breakdown in the protocol’s mint controls.
Next, the attacker converted USR into its staked wrapper, wstUSR, and then exchanged it into USDC and USDT to realize the gains in more liquid stablecoins. After that, the attacker used a combined $17.24 million in USDC and USDT to buy 9,111 ETH on the market.
USR plunged 74.2% and Venus halted related trading
The market reaction was immediate. USR dropped as much as 74.2%, touching $0.257 at its lowest point. At the time the report was published, the token had recovered part of the loss to around $0.86, though it remained below parity. For a dollar-pegged asset, that kind of move is enough to raise concerns across lending and collateral markets.
Venus Protocol, a lending platform on BNB Chain, responded by announcing that USR trading on the Venus Flux market had been suspended because of the depeg in Resolv-issued USR. Venus added that Venus Core was not affected and that user funds remained safe, while the team continued to monitor the situation and prepare updates.
Resolv’s structure puts attention on the mint mechanism
Resolv is described as a stablecoin protocol built around a delta-neutral strategy. USR is its yield-bearing dollar stablecoin, while wstUSR is the wrapped staked version of USR, designed in a way similar to wstETH in the Ethereum ecosystem.
The central issue in this incident is the reported failure of the minting mechanism. That flaw appears to have allowed large-scale USR issuance at a cost far below normal conditions, followed by conversion, liquidation, and a shift into ETH. The on-chain sequence is already visible. What the market is watching now is how Resolv handles the aftermath and whether USR can return to its peg.