Stablecoin protocol Resupply exploited, loses $9.5 million

The Resupply stablecoin protocol was exploited for approximately $9.5 million due to exchange rate manipulation, according to security analysts.

The attack targeted cvcrvUSD — a wrapped version of Curve USD (crvUSD) staked in Convex Finance. The attacker artificially inflated the price of cvcrvUSD through donations, which caused the price to spike. Resupply’s smart contract used this inflated price for exchange rate calculations, leading to a pricing discrepancy.

The attacker then invoked the borrow function and was able to borrow 10 million reUSD using just 1 wei of cvcrvUSD as collateral. Resupply confirmed the exploit and said the affected contract has been paused.

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