The stablecoin protocol Resupply proposed to destroy 6 million reUSD after being hacked for 10 million USD.

Gate News bot message, the DeFi protocol Resupply has proposed to destroy 6 million reUSD tokens in its insurance pool as part of the recovery plan.

Resupply is a stablecoin protocol that utilizes liquidity from the lending market, which was attacked earlier this week, resulting in a loss of approximately 10 million USD.

According to the event analysis report released by Resupply on June 28, the attacker manipulated the price of the crvUSD-wstUSR trading pair on the platform, specifically by exploiting edge cases in the oracle and exchange rate calculations to attack the platform’s solvency checks.

Since the self-attack occurred, the protocol has suspended the affected trading pairs and temporarily prevented assets from leaving the insurance pool. The insurance pool is a safety net that protects borrowers and maintains the stability of the protocol.

“The stolen funds are still on the chain,” Resupply stated in the incident analysis report. “We are monitoring the situation and taking necessary measures.”

The recovery proposal of the protocol states that in order to offset the stolen 10 million Tokens, the Resupply treasury has paid out over 2.86 million reUSD Tokens, leaving 7.13 million reUSD in unpaid bad debt.

The latest recovery plan proposes to destroy 6 million reUSD bad debts through the insurance pool, accounting for approximately 15.5% of the total amount of reUSD tokens in the pool.