Resupply Protocol to Burn 6 Million reUSD Following Hack

The stablecoin protocol Resupply has unveiled a recovery plan following a hack. The team has proposed burning 6 million reUSD from the insurance pool to cover the majority of the losses.

According to a report, on June 26, an attacker managed to manipulate the price of the crvUSD-wstUSR pair. Exploiting a vulnerability in the oracle and exchange rate calculations, the hacker was able to withdraw assets from the protocol.

Immediately after the attack, the Resupply team suspended the affected pair and blocked withdrawals from the insurance fund.

The loss amounted to $10 million. The protocol’s treasury has already covered 2.86 million reUSD, leaving an outstanding debt of 7.13 million reUSD.

To address this, the team proposed burning 6 million reUSD from the insurance pool, which represents approximately 15.5% of the total tokens in it.

The remaining debt of 1.13 million reUSD is planned to be repaid over time through DAO revenues, such as protocol fees or RSUP token sales.

The plan also includes a retention program for users whose funds in the insurance fund are affected. They will be offered additional RSUP as an incentive, with the option to withdraw assets at any time.

“This is not intended to compensate for losses, although it may fully or partially cover them,” Resupply noted.

If the community approves the proposal, it will be implemented three days after the voting concludes.

Earlier in June, hackers breached the Iranian exchange Nobitex for $100 million and exposed the platform’s source code.