Fluid Says Auto Limit Mechanism Contained Exposure After Resolv Hack

According to Resolv Foundation, the Resolv protocol and app were temporarily halted after the attack, extending disruption beyond Fluid’s paused USR market as recovery steps are prepared.

Summary

Fluid previously said its automatic limit mechanism contained exposure after the Resolv hack, paused the USR market, and stated that any bad debt on Fluid would be fully covered for users. Resolv Foundation has now added that the Resolv protocol and app were temporarily halted following the attack event. It said Season 4 airdrop claims and RESOLV token staking and unstaking are unavailable until a recovery plan is finalized and the app is considered safe to reopen.

Terms & Concepts
  • DeFi (decentralized finance): Blockchain-based financial services that operate without traditional intermediaries such as banks or brokers.
  • Bad debt: Losses created when borrowed funds cannot be fully repaid, often after collateral value falls or a hack disrupts recovery.
  • Airdrop: A distribution of tokens to eligible users, often based on prior participation, holdings, or activity in a protocol.