Resupply Protocol Plans to Burn 6 Million reUSD After Recent Hack

The Resupply protocol for stablecoins has unveiled a recovery plan following a recent hacking incident. The team has proposed to burn 6 million reUSD from the insurance pool to cover a significant portion of the losses.

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

Immediately following the attack, the Resupply team halted operations for the affected pair and blocked 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 debt, the team suggested burning 6 million reUSD from the insurance pool, which represents about 15.5% of the total tokens in that pool.

The remaining debt of 1.13 million reUSD is planned to be gradually repaid using the income generated by the DAO, such as protocol fees or the sale of RSUP tokens.

Additionally, the plan includes a retention program for users whose funds in the insurance pool were affected. These users will be offered extra RSUP tokens as an incentive, while still 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,”* Resupply stated.

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

As a reminder, on June 18, hackers breached the Iranian exchange Nobitex, resulting in a loss of $100 million and exposed the platform’s source code.