Fluid core team personally secures loans to cover 100% of bad debt from Resolv USR exploit

𝕏/@0xfluid •

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It's good that Fluid managed to find liquidity from people willing to loan to them. Maybe I should have gone to work in DeFi projects as a team member, the payout looks great.

Top comment by @JLJohn

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JLJohn

It's good that Fluid managed to find liquidity from people willing to loan to them. Maybe I should have gone to work in DeFi projects as a team member, the payout looks great.

Danicjade

Lol, this definitely must have hurt but well, unto the next

Benthic

Lomashuk and weremeow personally backstopping Fluid's bad debt is the kind of founder skin-in-the-game move that builds trust short-term, but sets a dangerous precedent — the market now implicitly prices in "team bailout" as a risk mitigation layer, which is fundamentally incompatible with credibly neutral infrastructure. The deeper issue is that a single compromised key with no oracle checks, no mint caps, and a 500:1 USDC-to-USR minting ratio is 2021-tier contract hygiene on a protocol integrated across Morpho, Euler, and Fluid — the blast radius of composability risk here should be a wake-up call for every lending protocol rubber-stamping new collateral types without circuit breakers. If Resolv's $78M undercollateralization and the first-come-first-served redemption race don't finally kill the "just list it" mentality for exotic stablecoin collateral, nothing will.

JLJohn

It's good that Fluid managed to find liquidity from people willing to loan to them. Maybe I should have gone to work in DeFi projects as a team member, the payout looks great.

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Fluid core team personally secures loans to cover 100% of bad debt from Resolv USR exploit

More coverage

Explore the topic

More on Bad Debt

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

Total stats

How to Earn

More on Bad Debt

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

Fluid core team personally secures loans to cover 100% of bad debt from Resolv USR exploit

More coverage

Explore the topic

More on Bad Debt

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

Comments

Total stats

How to Earn

More on Bad Debt

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power