Fluid Confirms $21M Bad Debt From Resolv Exploit — Now Fully Covered as Protocol Eyes Major Upgrades

DeFi liquidity protocol Fluid has disclosed that the March Resolv exploit — which involved the malicious minting of roughly $80 million in uncollateralized USR — left it with approximately $21 million in bad debt. Fluid stressed the attack was entirely external and did not compromise its smart contracts or underlying code.

The full $19.3 million in remaining bad debt has since been covered through a three-way split: Resolv contributed $9.7 million, Fluid's governance treasury absorbed $8.2 million, and the team personally covered $1.5 million. To rebuild its treasury, Fluid will pause FLUID token buybacks and cut or remove protocol incentives in the near term.

Looking ahead, Fluid plans to upgrade its oracle and pricing systems to harden against similar attack vectors, while simultaneously rolling out DEX v2, a Solana DEX, fixed-rate borrowing, Liquidity-as-a-Service, and custodied…