StablR’s euro (EURR) and US dollar (USDR) stablecoins have suffered severe depegging following an active exploit that drained approximately $2.8 million from the protocol.
Blockchain security firm Blockaid reported that the breach stemmed from a critical key management failure rather than a smart contract bug. The attacker compromised a private key belonging to one owner of StablR’s minting multisignature account. Because the protocol utilized a weak 1-of-3 threshold signature scheme, the attacker was able to unilaterally add themselves, remove the legitimate owners, and illicitly mint 8.35 million USDR alongside 4.5 million EURR.
Due to thin liquidity on decentralized exchanges, the hacker swapped the newly minted tokens for just 1,115 ETH, netting roughly $2.8 million. However, the sudden influx of unbacked supply devastated the tokens’ parity. EURR, which previously boasted a $14 million market capitalization, plummeted 23% to trade at $0.88. Simultaneously, the $11 million market cap USDR tanked 30% to $0.70.
StablR confirmed the ongoing incident on X, stating they are actively working to contain the fallout. The breach represents a significant blow to the issuer, which received investment from Tether in late 2024 and built its reputation on strict regulatory compliance and transparent proof-of-reserves.
This exploit compounds a brutal May for the decentralized finance sector. According to DeFiLlama, the industry has witnessed over a dozen major hacks this month, with protocols like Polymarket and Echo Protocol also falling victim to compromised administrative keys.
