It doesn't happen often but it can and will happen.
~$25M drained from DEX LPs in the Resolv USR exploit
Respect to the Resolv team, they acted swiftly once aware, pausing all protocol functions to contain further damage and are now deep in recovery and investigation mode. Transparency in crisis is tough, but they're stepping up.
A compromise is never fun.
Now the hard question: does Resolv make the DEX LPs whole?
RLP, the junior tranche was designed to absorb protocol losses. But it was built for market risks like negative funding rates and hedging slippage. Not for external hack fallout or compensating Curve LPs who absorbed the loss. There’s no automatic mechanism. It’s a pure policy decision, does this mean RLP holders take the full haircut for a security failure they had zero control over.
If Resolv compensates → RLP holders pay.
If they don’t → LPs eat the loss.
Default always hits someone.
Don’t let it be you.
Credit Risk Vaults are being built by SPICE. On-chain protection that pays out on a covered risk event.
Hedge before the next one prints.