Resupply protocol will burn 6 million reUSD after the hack

The Resupply stablecoin protocol presented a recovery plan after the hack. The team proposed to burn 6 million reUSD from the insurance pool to cover most of the losses.

According to the report, on June 26, the attacker was able to manipulate the price of the crvUSD-wstUSR pair. He exploited a vulnerability in the oracle calculation and exchange rate, which allowed him to withdraw assets from the protocol.

Immediately after the attack, the Resupply team suspended the operations of the affected pair and blocked the withdrawal of funds from the insurance fund.

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

To settle it, the team proposed to burn 6 million reUSD from the insurance pool. This accounts for approximately 15.5% of the total token volume in it.

The remaining debt of 1.13 million reUSD is planned to be repaid over time through the revenues of the DAO — for example, protocol fees or sales of RSUP tokens.

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. At the same time, users will have the opportunity to withdraw assets at any time.

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

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

On June 18, hackers breached the Iranian exchange Nobitex for $100 million and disclosed the platform's source code.