Resolv’s USR Crashes 74% After $80M Mint Exploit

Resolv Labs’ USR stablecoin dropped about 74% from its U.S. dollar peg on March 22, 2026, after an exploit enabled the minting of tens of millions of unbacked tokens. The incident disrupted market stability and triggered a sharp sell-off across decentralized exchanges.

The decline stemmed from a smart contract flaw that allowed an attacker to mint up to 80 million USR using a relatively small amount of USDC. Consequently, the sudden surge in supply pushed the token down to $0.257 before it partially recovered.

What Went Wrong

An on-chain analyst first flagged the incident by sharing transaction details and contract interactions on X. The data showed a large mint originating from a null address before funds moved to a wallet linked to the exploiter.

Further blockchain analysis indicates that the exploit involved a function tied to token swap execution within the protocol. The call resulted in the creation of tens of millions of USR, which were quickly transferred and prepared for sale.

Early assessments suggest the issue may stem from a decimal precision error in how the contract handled USDC values. Since USDC uses six decimals, a mismatch in calculations likely enabled inflated token issuance.

As a result, the abnormal minting event created a rapid imbalance between supply and backing. This imbalance drove the stablecoin far below its intended $1 value in a short time.

The price dislocation triggered intense market activity as participants reacted and attempted to exit positions. Trading volume spiked sharply during the decline and remained elevated through the partial recovery phase.

Resolv Labs confirmed the exploit shortly after detection and halted core protocol functions. The pause aimed to prevent further unauthorized minting and contain additional damage.

Exploiter Moves Millions

USR operates as a yield-bearing stablecoin backed by ETH collateral and hedging strategies in derivatives markets. The design also includes a separate risk token that absorbs volatility within the system.

Despite this structure, the attacker exploited the system by selling large amounts of USR across decentralized exchanges. Estimates suggest that about $25 million in value was extracted, with a portion converted into ETH.

The sell-off prompted several decentralized finance platforms to pause or restrict USR-related markets. These measures aimed to reduce exposure while teams assessed potential risks.

The post Resolv’s USR Crashes 74% After $80M Mint Exploit appeared first on CoinTab News.