USR Stablecoin has experienced a security breach.
The delta-neutral stablecoin issued by Resolv Labs has encountered a hacked smart contract issue allowing the perpetrator to mint over 80M USR stablecoins.
Currently, the team has paused all minting capabilities, with the value depeg going down to $0.5 to the $1 dollar target. The team has provided users with an update following the incident.
Importantly, USR is not backed by cash equivalent reserves or adheres to similar reserve backing requirements such as USDT, USDC, but rather by crypto-assets such as Eth and uses a delta-neutral strategy to keep the value. A full mechanism description can be found in their docs on p.13.
Founder and CEO Stani Kulechov from Aave has also given an update to users in the Aave ecosystem, stating that there has been no direct exposure to the USR stablecoin and therefore no impact to the capacity of the popular DeFi lending protocol‘s operations.
