Re7 Labs Opens $223K USDC Compensation Pool for USR Exploit Victims

DeFi risk curator Re7 Labs said this morning that wallets affected by the March exploit of Resolv Labs’ USR stablecoin can claim a share of a 223,000 $USDC compensation pool. The makeup payment closes one of the smaller curator-side liabilities tied to the incident.

The pool covers users whose positions in Re7’s Re7 $USDC Base vault on Base and Re7 $USDC Core Mainnet vault on Ethereum were caught by the exploit, per the announcement from Re7 Labs. Eligibility was snapshotted at the moment Re7 delisted the affected USR markets. Affected wallets can connect to the Merkl app to view and claim their pro-rata share.

Resolv Labs Attack

The compensation traces to a March 23 attack on Resolv Labs in which an attacker compromised the project’s AWS-hosted key management service and minted 80 million USR using under $200,000 of collateral. The attacker swapped the unbacked tokens through staked variants into $USDC and then Ether, walking away with roughly $23 million in ETH. USR depegged from $1 to a low of around $0.20, and CoinGecko data shows the token still trading well below par.

Re7’s role

Re7 Labs curates lending vaults on Morpho Blue, Euler and other venues, setting collateral parameters and listing assets rather than issuing tokens of its own. Re7’s flagship mRe7YIELD strategy had no USR exposure. Two of its smaller curated vaults on Morpho, Re7 $USDC Base and Re7 $USDC Core Mainnet, had listed USR as collateral and were drawn into the exploit. The curator currently shows $92.5 million in TVL across 14 vaults per DefiLlama.

The curator-accountability arc

Re7 is the latest of several Morpho curators to ring-fence a payout. Gauntlet and Resolv reached a far larger compensation agreement on June 4, opening more than 4.37 million $USDC of claims to affected Gauntlet vault users, also routed through Merkl. Snapshots in both cases were taken at market-removal time, with v1.1 vaults claimable only after liquidity is exhausted.

The Resolv exploit pulled in at least 15 Morpho vaults with more than $10,000 of liquidity, per Morpho co-founder Paul Frambot. Curators Gauntlet, Re7 Labs, kpk and 9summits were named at the time. With Gauntlet and Re7 now publishing claim mechanics, the smaller curators remain the open file on the cleanup.