important notes
The vote has so far had 18 participants, all of whom voted in favor of allowing forced liquidation of the USDX market. MEV Capital has set the allocation cap to zero and updated the USDT/sUSDX market interest rate model accordingly. Borrowing interest rates for the affected vaults reached 800%, and repayments from major borrowers associated with Stables Labs were zero.
Lista DAO initiated an emergency governance vote on November 6, 2025 to allow for the forced liquidation of the USDX market involving vaults managed by MEV Capital and Re7 Labs. The poll, called LIP 022, will be open until 12:12pm on November 9th via the Snapshot platform.
As of this writing, only 18 veLISTA token holders have voted, and all are in favor of the liquidation measure. This proposal targets unusually high borrowing rates within a vault where collateral assets $sUSDX and $USDX exhibit no repayment activity.
Lista DAO said the forced liquidation is aimed at minimizing potential losses and maintaining healthy market conditions across the on-chain peer-to-peer lending ecosystem.
📢 LIP 022 – Emergency vote: Enabling forced liquidation of USDX market (re7 vault)
This proposal is being proposed as a one-hour emergency vote following a request from the Vault Curator to enable a forced liquidation mechanism for the USDX/USD1 market.
🔹@Re7Labs… pic.twitter.com/cs9ynd3XOH— Lista DAO (@lista_dao) November 6, 2025
Event timeline
9:23 AM (UTC): Lista DAO announced that it is monitoring borrowing rates reaching 800% on MEV Capital USDT Vault and Re7 Labs USD1 Vault. According to the DAO, the protocol identified zero repayments from key borrowers associated with Stables Labs using collateral assets $sUSDX and $USDX. Lista called on the vault managers of both institutions to immediately take responsibility and be transparent in protecting users.
We are aware of the @MEVCapital USDT vault and @Re7Labs USD1 vault and are closely monitoring the collateral assets ($sUSDX and $USDX) as they continue to face unusually high borrowing rates with no repayment activity.
As an on-chain P2P lending protocol, Lista Lending…
— Lista DAO (@lista_dao) November 6, 2025
10:55 AM UTC: Re7 Labs has provided a proposed plan to address the Vault issue and proposed a forced liquidation via the Lista DAO Discord channel. Lista DAO confirmed this statement and announced that a governance vote to enable the liquidation process is imminent.
update:
We received an official statement from @Re7Labs on Discord regarding the proposed plan for asset handling in the USDX market.
Link: https://t.co/2FBwiU6nSoIn light of this update, Lista DAO will soon begin a governance vote to proceed with market clearing. https://t.co/yNlQzTbV5A pic.twitter.com/IX0ZFgXfJw
— Lista DAO (@lista_dao) November 6, 2025
11:08 a.m. UTC: PancakeSwap said it was monitoring the situation and advised users to review their positions in the affected liquidity pools.
Our team is also aware of the situation regarding the affected vaults and is closely monitoring them. Check out and monitor positions on these vaults on PancakeSwap. We will continue to update the latest information and share information as necessary.
Stay SAFU. https://t.co/tHpY2Z0L5J
— PancakeSwap (@PancakeSwap) November 6, 2025
11:15 AM UTC: Lista DAO has initiated an emergency governance vote (LIP-022) at the request of Re7 Labs’ Vault Curator. The proposal calls for adjusting the USDX oracle price in proportion to the loan balance to trigger a public liquidation of affected positions.
11:50 a.m. (UTC): MEV Capital has acknowledged the rise in borrowing rates in its USDT/sUSDX market and has implemented mitigation measures such as setting a zero allocation cap and updating its interest rate model. The collateral assets are similar to those involved in the $93 million Stream Finance loss where xUSD collateral contributed to the protocol failure.
In the USDT/sUSDX market, borrowing rates are rising while repayment activity is restricted.
MEV Capital’s recent initiatives:
– Set the quota cap for this market to 0
– Updated interest rate model (IRM) to adjust borrowing incentivesListaDAO’s community is voting to update… https://t.co/fnNZ3GfgNK
— MEV Capital (@MEVCapital) November 6, 2025
This vote will determine whether Lista DAO will proceed with the process of deactivation and forced liquidation of the oracle. The proposal states that immediate action may be taken if abnormal liquidity conditions are detected in the USDX market even before the voting period ends.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information but should not be taken as financial or investment advice. Market conditions can change rapidly, so we recommend that you verify the information yourself and consult a professional before making any decisions based on this content.
Zoran Spirkovski, Web3 Marketing Strategist and former CMO of DuckDAO, transforms complex cryptographic concepts into compelling stories that drive growth. With a background in cryptocurrency journalism, he excels in developing go-to-market strategies for DeFi, L2, and GameFi projects.
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