Resupply proposes to destroy 6 million reUSD to address a $10 million attack incident

The stablecoin protocol Resupply proposes to destroy 6 million reUSD from the insurance pool to address an attack of approximately $10 million that occurred earlier this week.

The attacker exploited a price loophole in the crvUSD-wstUSR trading pair, bypassing the platform's solvency detection mechanism. After the incident, the protocol has suspended the trading pair and temporarily frozen the insurance pool funds to protect lenders.

The Resupply treasury has paid out approximately 2.86 million reUSD, and there are currently 7.13 million reUSD bad debts remaining. The proposal aims to reduce liabilities by destroying approximately 15.5% of the reUSD in the insurance pool, with the remaining portion to be gradually repaid by the DAO through future income or OTC sales of RSUP tokens.

If the proposal passes, it will be executed in three days. To retain affected users, Resupply will issue additional RSUP rewards, but this plan does not guarantee complete compensation for losses.