Resolv allocates 9% of RESOLV token supply to security incident recovery and pivots focus to Vault Street.
Security & Exploits ·
Resolv has allocated 9% of its RESOLV token supply to a security incident recovery program following a March 2026 exploit in which an attacker compromised the protocol's signing infrastructure and minted approximately 80 million unbacked USR tokens, extracting roughly $23–25 million in value. The breach affected depositors across Resolv's stablecoin and insurance layers, rippling through connected DeFi platforms including Morpho ecosystem vaults. Alongside the recovery initiative, Resolv launched Vault Street, a new product line focused on leveraged institutional real-world asset offerings, with primeUSD as its first product.
The three-month recovery program covers USR, RLP, and LP token holders, while the protocol maintains its RESOLV token utility and staking structure unchanged. Investigation into the incident traced the exploit to a compromised AWS key, and subsequent research revealed that Fluid, a connected protocol, had used an internal credit line to cover Resolv bad debt rather than deploying user-earmarked funds—a move that shifted cleanup risk to USDC and USDT suppliers.
Post-exploit financial results show Resolv generated $722K in Q1 revenue, though weekly fees have fallen below $10K as the staking frontend remains offline during recovery. The long-term implications of the token allocation decision and whether the recovery timeline will restore full protocol function remain to be clarified.