Another stablecoin crisis has hit the cryptocurrency market. USR, a stablecoin issued by ResolvLabs, saw a significant drop in value following an alleged security exploit. According to on-chain data, one address generated 50 million USR using only around 100,000 USDC. This unusual transaction caused a sharp drop in the price of USR.
Following the incident, USR quickly lost 74.2% of its value, falling to $0.257. It then showed a partial recovery, rising to around $0.78. At the time of writing, it fell 93% daily, trading at $0.06. The token was initially supposed to be set at $1.
The chart shows the decline in USR price.
It was also determined that the attacker began converting the obtained funds into different assets. According to current data, the attacker has purchased around $4.55 million worth of ETH so far. Blockchain security firm PeckShield said a total of around $80 million worth of USR could have been issued.
On the other hand, Aave, one of the leading protocols in the DeFi ecosystem, also released a statement on the matter. The Aave CEO argued that despite the USR decay process, the protocol has no exposure to ResolvLabs’ USR.
*This does not constitute investment advice.
