In a significant move for decentralized finance (DeFi) security and accountability, the Fluid Protocol has successfully repaid a substantial $70 million debt stemming from the recent Resolv Protocol exploit. This decisive action, announced on March 21, 2025, marks a critical step in stabilizing the ecosystem and restoring user confidence after a major security breach.
The DeFi lending platform confirmed it has cleared approximately $70 million in unauthorized USR stablecoin debt, which originated from a hack on the interconnected Resolv Protocol. The repayment occurred across both the BNB Chain and the Plasma blockchain. The platform's team expects to settle the remaining balance completely within the coming days.
The incident began when attackers compromised the Resolv Protocol, resulting in the unauthorized minting of about $80 million worth of USR, a stablecoin. This illicitly created stablecoin then entered the broader DeFi ecosystem, including markets on Fluid Protocol.
Fluid Protocol is leveraging its decentralized governance model to manage the aftermath. The team has posted an on-chain governance proposal to transfer the remaining USR debt to a dedicated multisignature wallet controlled by the team, which will then facilitate the final settlement directly with the Resolv Protocol. All of Fluid's lending and borrowing markets continue to operate normally.
In a related update, Resolv Labs announced on March 25 that over the past two days, $77 million+ has been redeemed for allowlisted wallets with pre-exploit USR, representing over 90% of this group. This marks strong progress in the first phase of recovery.
Fluid Protocol has announced it will soon reveal a detailed compensation plan for all affected users. Other affected platforms, such as Midas and Gauntlet, have also contained their exposure and are working on compensation plans.
Despite these recovery efforts, the USR stablecoin is still trading far below its $1 peg, at approximately $0.31. Resolv Labs has issued a 72-hour ultimatum to the attacker to return 90% of the $25 million in converted funds, expiring after Thursday, March 26, after which it will pursue legal actions.
