Leviathan News’ “The Current” newsletter spotlights several developments spanning DeFi exploits, institutional crypto adoption, and structured credit experiments. The lead item covers the Resupply exploit, where an attacker used a classic ERC-4626 “donation” vector plus a rounding bug to borrow roughly $9.5–10 million worth of the protocol’s reUSD stablecoin against only 1 wei of cvcrvUSD collateral. The bug arose in a newly deployed vault with no prior deposits; by donating a large amount of crvUSD to the vault and then minting a single wei of shares, the attacker massively inflated the apparent value of that share, then hit an integer-division edge case that drove the exchange rate used in solvency checks effectively to zero, allowing them to drain the market via a flash-loan-powered transaction. Resupply, a subDAO of Convex and Yearn, has since paused the affected market and proposed recovery steps such as burning reUSD from its insurance pool and using treasury and partner funds to cover remaining bad debt.
The issue also flags three broader structural stories. First, Fannie Mae has reportedly moved to allow US mortgage lenders to treat Bitcoin holdings as part of their reserves, a quiet policy shift that, if fully implemented, could increase the asset’s legitimacy within US housing finance by letting banks backstop mortgage exposures with BTC on balance sheet. Second, zkLend, a lending protocol on Starknet, is characterized as effectively defunct following an earlier hack, underscoring how security failures on emerging L2 ecosystems can be existential for smaller projects. Finally, Sky, Grove, and Centrifuge are said to be collaborating on what they describe as DeFi’s first $1 billion collateralized loan obligation (CLO), an attempt to bring a traditional structured credit product on-chain at scale. Together, these stories highlight the tension between rapid DeFi innovation, persistent smart contract risk, and the gradual integration of Bitcoin and on-chain credit structures into more traditional financial rails.
✨ AI-generated background, compiled from web sources — not editorial content.
