Resupply, a stablecoin DeFi platform, has unveiled a recovery plan that includes burning six million reUSD tokens from its insurance pool following a $10 million hack. The platform has decided to burn 6 million ewUSD tokens to compensate for the loss of 10 million.
The stablecoin-focused protocol, which utilizes lending market liquidity, suffered a $10 million exploit earlier this week. According to a June 28 postmortem report, the attacker targeted a vulnerability in the crvUSD-wstUSR pair, manipulating the share price and solvency check mechanism by exploiting an edge case in the platform’s oracle and exchange rate calculations.
To address this issue, Resupply ceased trading the affected pair and locked the funds in its insurance pool, which serves as a safety cushion to protect users and maintain platform stability. The token burn is aimed at stabilizing the ecosystem and partially offsetting the damage from the incident.
The platform is still tracking the stolen tokens on the blockchain. To recover, Resupply’s treasury paid back 2.86 million reUSD, but there is still 7.13 million reUSD in losses to cover. They plan to “burn” 6 million reUSD tokens from the insurance pool, 15.5% of the total tokens in pool, to reduce most of this debt.
The remaining 1.13 million reUSD will be paid back slowly using future profits or other methods, which will be decided later on. If users agree to this plan, it will start three days after the vote. The platform’s community (DAO) will decide how to do this.
Resupply also offers a program that encourages users to retain their money in the insurance pool by providing them with a total of 2.5 million RSUP tokens, although users have the option to withdraw their funds if they prefer.
This program isn’t meant to fully cover losses but aims to keep users involved. However, Resupply is trying to resolve the problem while keeping users confident in the platform.
