Designed as a stablecoin and expected to remain stable at $1, USR lost most of its value after a serious security breach. Approximately 80 million dollars of unsecured USR was generated by capturing the private key in the protocol developed by Resolv Labs. Following this development, smart contracts were stopped and some of the unauthorized tokens were burned; But the imbalance in the market quickly deepened.
Unsecured Token Printing Disturbed the Balances
Currently, the USR supply includes approximately 71 million unsecured tokens remaining in circulation, along with 102 million pre-event tokens. While the total assets of the protocol decreased to 95 million dollars, total liabilities are calculated as approximately 173 million dollars. This chart shows that the coverage rate has dropped to approximately 55 percent.
In the repayment process initiated by the protocol, priority is given to investors before the event. If this group withdraws its assets first, the existing reserves will only be sufficient for this segment and a provision of approximately $0.93 per dollar will occur. However, serious uncertainty remains for other users due to unsecured tokens in the system.
USR price fell sharply in the markets. While the token lost 72 percent of its value on a weekly basis, it dropped 61 percent in the last 24 hours and was traded at $ 0.27. The intraday price range varied between $0.14 and $0.82. The fact that the daily transaction volume reached 8.4 million dollars revealed that a significant part of the supply in circulation changed hands in a short time.
Vulnerability Spreads to DeFi Ecosystem
Resolv Labs stated that the attack was not caused by a smart contract error, but by a key capture at the infrastructure level. The company stated that collateral assets were not directly affected, but the attack occurred through third-party access. The team continues the process of recovering losses by working with law enforcement and on-chain analysis firms.
Charles Guillemet, chief technology officer of hardware wallet manufacturer Ledger, drew attention to the impact of the incident on decentralized financial markets.
He stated that this event could create bad debt, especially in some liquidity pools, and that some structures using USR collateral have already been closed.
According to the data, the total locked asset value of the protocol increased to 684 million dollars in February 2025. However, this value, which showed a downward trend throughout the year, dropped to approximately 95 million dollars before the attack. This revenue stream of the system, which previously received an investment of 10 million dollars and produced an annual income of 5.28 million dollars, has actually ended.
The Resolv team warned users not to trade USR and related tokens during the current period. In the statement, it was stated that the actions taken in the post-attack period may affect future claims. This warning reveals that the recovery process is complex and uncertain.
