Resupply Protocol Plans to Burn 6 Million reUSD Following $10 Million Hack

The Resupply protocol for stablecoins has presented a recovery plan following a breach that resulted in a loss of $9.5 million. The team has proposed to burn 6 million reUSD from the insurance pool to cover most of the losses.

According to a report, on June 26, the attacker managed to manipulate the price of the crvUSD-wstUSR pair. They exploited a vulnerability in the oracle’s calculations and the exchange rate, allowing them to withdraw assets from the protocol.

Immediately after the attack, the Resupply team suspended the functionality of the affected trading pair and halted withdrawals from the insurance fund.

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

To address this shortfall, the team proposed burning 6 million reUSD from the insurance pool, which represents about 15.5% of the total tokens held there.

The remaining debt of 1.13 million reUSD is expected to be gradually repaid through the income generated by the DAO, which may include protocol fees or sales of RSUP tokens.

Furthermore, the plan includes a retention program for users whose assets were affected in the insurance fund. They will be offered additional RSUP tokens as an incentive while retaining the option to withdraw their assets at any time.

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

If the community approves the proposal, implementation will occur three days after the voting period ends.

It’s worth noting that on June 18, hackers breached the Iranian exchange Nobitex, stealing $100 million and revealing the platform’s source code.