During the @ResolvLabs USR exploit, 80M unbacked tokens were minted against $200k in collateral. The oracle kept reporting $1.00 throughout. Automated allocators kept supplying USDC. For hours.
A hardcoded price feed has no mechanism to track reserve state. When supply expands without corresponding reserve growth, the feed cannot reflect that. From the protocol’s perspective, nothing looked wrong.
For reserve-backed assets, price alone is insufficient. A stablecoin’s value is defined by what backs it. Without a feed that verifies reserve state in real time, protocols have no signal that backing has broken down.
Addressing this requires two layers working together: a market feed tracking price, and a reserve verification feed tracking backing ratio in real time. When they diverge, that divergence is the signal that stops automated systems from compounding the damage.
@DIAdata_org builds both. Market feeds for liquid assets. Reserve-backing ratio and Proof of Reserves feeds for assets where value is defined by backing, not by trading.