A European stablecoin issuer backed by Tether suffered an exploit on Saturday that drained roughly $2.8 million from its minting contract. The attack sent its two tokens, EURR and USDR, sharply off their pegs.
Minting contract breached
The exploit targeted StablR's minting contract, the smart contract responsible for creating new tokens. Attackers found a way to siphon funds from it, though the specific vulnerability has not been publicly detailed. Security firm Blockaid first identified the attack on-chain, flagging the unusual activity.
EURR and USDR lose their pegs
EURR, designed to track the euro, and USDR, pegged to the U.S. dollar, both collapsed in value as the market reacted. Data from decentralized exchanges showed the tokens trading at steep discounts shortly after the breach. The depeg underscores how quickly trust can evaporate when a stablecoin's underlying contract is compromised.
Tether backing
StablR is backed by Tether, the company behind the world's largest stablecoin USDT. Tether has invested in several stablecoin projects. The connection didn't prevent the exploit, which hit StablR's own minting contract rather than any Tether infrastructure.
The $2.8 million drain left EURR and USDR holders uncertain about the value of their tokens. As of Sunday, the tokens remained well below their intended pegs.
