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Resupply protocol outlines recovery plan post $10M exploit, proposes $6M token burn

2025-06-30 11:46:45

Resupply protocol outlines recovery plan post $10M exploit, proposes $6M token burn

Main Idea

Resupply's recovery plan involves burning $6 million reUSD from its insurance pool to cover losses from a $10 million exploit, with additional security measures to prevent future incidents.

Key Points

1. The recovery plan proposes burning $6 million reUSD from the $38.7 million insurance pool to address the $7.13 million remaining debt after $2.87 million was repaid.

2. The exploit occurred on June 25, 2025, due to a vulnerability in the crvUSD-wstUSR market, where the attacker manipulated the CurveLend vault to bypass solvency checks.

3. Resupply clarified that the exploit was not a typical inflation attack but involved inflating CurveLend collateral shares to nullify borrower solvency checks.

4. The protocol will implement stronger security measures to prevent similar exploits in the future.

5. The remaining $1.13 million debt after the token burn will be addressed separately.

Description

The decentralized stablecoin protocol recently hit by a multi-million-dollar exploit has presented a formal recovery plan to address the fallout. According to Resupply’s latest announcement, the recovery plan will focus on stabilizing the protocol’s finances and supporting affected users. At the core of the plan is a proposal to burn $6 million reUSD from the protocol’s insurance pool, which currently holds about $38.7 million. The exploit, which took place on June 25, 2025, resulted in losses r...

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