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

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.