Stablecoin protocol Resupply proposes to burn 6 million tokens after a $10 million vulnerability.

Gate News bot news, on June 30, the DeFi protocol Resupply proposed to burn 6 million reUSD tokens in its insurance pool as part of a recovery plan. Previously, Resupply encountered a theft incident of about 10 million USD.

Resupply is a stablecoin protocol that utilizes the liquidity of the lending market. According to an analysis report dated June 28, attackers manipulated the stock price of the platform crvUSD-wstUSR pair by exploiting edge cases in the oracle and exchange rate calculations to target the platform’s solvency checks. After the incident, the protocol suspended the affected currency pairs and temporarily prevented assets from leaving the insurance pool.

The recovery proposal from Resupply states that to offset the 10 million stolen tokens, the treasury has paid out over 2.86 million reUSD tokens, leaving 7.13 million reUSD in unpaid bad debt. The latest plan suggests to destroy 6 million reUSD bad debt through the insurance pool, accounting for about 15.5% of the total reUSD tokens in the pool. The remaining bad debt will be gradually repaid by the DAO through future income sources.

Once the proposal is approved, it will take effect three days after the vote. Resupply also plans to establish a retention plan for affected users and incentivize them to remain in the insurance pool through additional RSUP rewards. Users can choose to withdraw and extract funds from the insurance pool.