Cyvers Flags $80M Unbacked Mint Exploit in Resolv Labs’ $USR Stablecoin — Token Crashes 74% to $0.257

Cyvers Alerts has detected a critical minting logic flaw in Resolv Labs’ delta-neutral stablecoin $USR, enabling an attacker to mint approximately 80 million unbacked tokens with minimal collateral input — a roughly 500:1 mismatch that triggered an immediate and violent depeg.

The exploit stemmed from a vulnerability in the completeSwap() function, which failed to enforce proper validation despite prior audits. According to on-chain data, the attacker deposited roughly $100K–$200K and inflated supply by tens of millions in a single vector.

Immediate fallout:

• $USR depegged sharply to ~$0.257 (–74% from $1 peg)

• Rapid liquidity drainage across all major pools

• ~$23.8M already swapped into ETH and currently held at: 0x8ED8cF0C1c531C1b20848E78f1CB32fa5B99b81C

• Funds continue to move and fragment across wallets in real time

• Attacker address linked to the initial mint: 0x04A288a7789DD6Ade935361a4fB1Ec5db513caEd

Resolv Labs has paused all protocol functions and confirmed it is investigating the unauthorized minting incident. The team stated that the underlying collateral pool remains fully intact and no base assets were drained — the damage is isolated to inflated supply.

Cyvers CEO & Co-founder Deddy Lavid issued a strong statement:“This is exactly where stablecoin risk becomes real. Audits alone are not enough, if you’re not monitoring minting and supply in real time, you’re blind when it matters most.

At Cyvers, we believe every protocol interaction must be continuously monitored, and anomalies in minting, pricing, or liquidity must be stopped before they propagate. That’s the only way to contain events like this before they cascade.”

This incident underscores the fragility of even audited stablecoin designs when real-time behavioral monitoring is absent. Second-order effects are already rippling into protocols holding $USR or wstUSR exposure.Live on-chain monitoring continues. Full thread with transaction details:

On-Chain Media will update as Resolv’s recovery plan, attacker fund flows, and potential reimbursement details emerge. This is developing rapidly.