Resupply's Bold Recovery Plan After $10M Crypto Heist

Hold onto your hats, crypto fans! The decentralized stablecoin protocol that was just rocked by a massive multi-million-dollar exploit has stepped up with a gutsy recovery plan to tackle the chaos.

Resupply isn't messing around. Their latest announcement lays out a plan to steady the ship and give a lifeline to the users caught in the crossfire.

The heart of this daring strategy? Burning a whopping $6 million in reUSD straight from their insurance pool, which is currently sitting pretty at around $38.7 million. Remember that wild exploit on June 25, 2025? It cost them $10 million, but Resupply's already clawed back $2.87 million through the treasury and their partners, leaving them with a $7.13 million hole to fill.

We've got all the juicy details in our post-mortem on the wstUSR market exploit and the recovery plan. Check it out below.

Burning $6 million would knock out most of that debt, leaving a cool $1.13 million for the DAO to handle. They're planning to chip away at it with future earnings, like protocol fees or even selling some RSUP tokens.

But hold up, nothing's set in stone yet. All these moves need a green light from the community through a governance vote. To keep things rolling, they're pushing for a lightning-fast three-day voting window instead of the usual week.

If the vote's a go, that token burn will happen ASAP, and the insurance pool withdrawals, which were slammed shut after the exploit, could reopen within the original seven-day cooldown period.

How the Resupply Exploit Went Down

So, how did this crazy exploit happen? The post-mortem spills the beans. The attacker found a sneaky vulnerability in the crvUSD-wstUSR market. It all went down because the CurveLend vault was fresh with no prior deposits, letting the attacker play fast and loose with the share value calculations.

Here's the wild part: they threw a ton of crvUSD into the vault and minted just 1 wei of shares. That move jacked up the prices, making the collateral look way more valuable than it really was.

The oracle might've reported the inflated value, but a sneaky rounding glitch in the contract's exchange rate calculation made it zero out. That zero broke the protocol's solvency check, making every loan request look like a walk in the park. With that bypass, the attacker could borrow up to the pair's full $10 million reUSD debt limit.

Resupply made it clear this wasn't your run-of-the-mill inflation attack. It was a slick, targeted move designed to wipe out the solvency logic completely.

"The exploit flow involved inflation of the CurveLend collateral shares, but it's not your typical 'inflation attack.' It was carefully crafted to nullify the borrower solvency check," Resupply declared.

The team's also keeping a close eye on the stolen funds, which are still chilling on-chain. And you better believe they're beefing up security to make sure this kind of heist never happens again.