Bitget App
Trade smarter
MarketsTradeFuturesEarnSquareMore
Emergency Liquidation Vote Underway as USDX Vaults Face 800% Borrowing Rates

Emergency Liquidation Vote Underway as USDX Vaults Face 800% Borrowing Rates

CoinspeakerCoinspeaker2025/11/05 16:00
By:By Zoran Spirkovski Editor Yana Khlebnikova

The governance vote runs until Nov. 9, targeting 800% borrowing rates in USDT and USD1 vaults with no repayment activity.

Key Notes

  • The vote has 18 participants so far, all voting yes to enable forced liquidation of the USDX market.
  • MEV Capital set its allocation cap to zero and updated the Interest Rate Model for the USDT/sUSDX market in response.
  • Borrowing rates in the affected vaults reached 800% with zero repayments from major borrowers linked to Stables Labs.

Lista DAO launched an emergency governance vote on Nov. 6, 2025, to enable forced liquidation of the USDX market involving vaults managed by MEV Capital and Re7 Labs. The vote, designated as LIP 022, will run until Nov. 9 at 12:12 PM through the Snapshot platform.

At the time of writing, only 18 veLISTA token holders have voted, all in favor of the liquidation measure. The proposal targets abnormally high borrowing rates in vaults where collateral assets $sUSDX and $USDX have shown no repayment activity.

Lista DAO stated that the forced liquidation aims to minimize potential losses and maintain healthy market conditions across the on-chain peer-to-peer lending ecosystem.

📢 LIP 022 – Emergency Vote: Enabling Forced Liquidation for USDX Market (re7 vault)

This proposal is being put forward as an emergency one-hour vote, following a request from the vault curator, to enable forced liquidation mechanisms for the USDX/USD1 market.
🔹The @Re7Labs … pic.twitter.com/cs9ynd3XOH

— Lista DAO (@lista_dao) November 6, 2025

Timeline of Events

9:23 AM UTC: Lista DAO publicly announced it was monitoring borrowing rates reaching 800% in the MEV Capital USDT Vault and Re7 Labs USD1 Vault. The protocol identified zero repayments from major borrowers linked to Stables Labs using collateral assets $sUSDX and $USDX, according to the DAO. Lista called on both institutional vault managers to take immediate responsibility and transparency to protect users.

We are aware and has been closely monitoring the @MEVCapital USDT Vault and @Re7Labs USD1 Vault, where collateral assets ($sUSDX and $USDX ) continue facing abnormally high borrowing rates without repayment activity.

As an on-chain P2P lending protocol, Lista Lending has been…

— Lista DAO (@lista_dao) November 6, 2025

10:55 AM UTC: Re7 Labs provided a proposed plan through the Lista DAO Discord channel to address the vault issues, proposing forced liquidations. Lista DAO acknowledged the statement and announced an imminent governance vote to enable the liquidation process.

Update:

We’ve received a public statement from @Re7Labs in our Discord regarding their proposed plan for asset handling the USDX market.
Link: https://t.co/2FBwiU6nSo

In light of this update, Lista DAO will soon initiate a governance vote to proceed with the market liquidation… https://t.co/yNlQzTbV5A pic.twitter.com/IX0ZFgXfJw

— Lista DAO (@lista_dao) November 6, 2025

11:08 AM UTC: PancakeSwap said it was monitoring the situation and advised users to review their positions in affected liquidity pools.

Our team is also aware of the situation involving the affected vaults and are monitoring it closely. Please review and monitor your positions involving these vaults on PancakeSwap. We’ll continue to stay updated and share information as needed.

Stay SAFU. https://t.co/tHpY2Z0L5J

— PancakeSwap (@PancakeSwap) November 6, 2025

11:15 AM UTC: Lista DAO launched the emergency governance vote (LIP-022) at the request of the Re7 Labs vault curator. The proposal calls for adjusting the oracle prices of USDX in proportion to outstanding loan amounts to trigger public liquidation of affected positions.

11:50 AM UTC: MEV Capital acknowledged elevated borrow rates in its USDT/sUSDX markets and implemented mitigation measures, including setting the allocation cap to zero and updating the Interest Rate Model. The collateral assets are similar to those implicated in the $93M Stream Finance loss , where xUSD collateral contributed to protocol failures.

USDT/sUSDX markets have experienced elevated borrow rates with limited repayment activity.

Recent MEV Capital actions:
– Set allocation cap to 0 for this market
– Updated the Interest Rate Model (IRM) to adjust borrowing incentives

ListaDAO's community is voting to update the… https://t.co/fnNZ3GfgNK

— MEV Capital (@MEVCapital) November 6, 2025

The vote will determine whether Lista DAO proceeds with the oracle override and forced liquidation process. The proposal notes that immediate action may be taken if abnormal liquidity conditions are detected in the USDX market, even before the voting period concludes.

next
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Hayes' Influence on DeFi Liquidity Fluctuations Drives Market Sentiment and Fuels Discussion

- Arthur Hayes, ex-BitMEX CEO, intensifies DeFi activity via strategic ENA , PENDLE, and ETHFI transactions, shaping liquidity dynamics. - On-chain analytics reveal $1.42M diversified portfolio acquisitions from Cumberland , reflecting risk management in yield-generating assets. - High-profile trades, including $245K ENA purchase post-$1.38M liquidation, influence short-term price volatility and market sentiment. - Analysts view Hayes' movements as a DeFi confidence barometer, though caution against overin

Bitget-RWA2025/11/30 07:20
Hayes' Influence on DeFi Liquidity Fluctuations Drives Market Sentiment and Fuels Discussion

Bitcoin Updates Today: Technical Optimism and Institutional Interest Face Off Against Broader Economic Challenges

- Bitcoin hovers near key Fibonacci support amid volatility, with technical indicators showing neutral RSI and bullish MACD but bearish EMA resistance. - Nasdaq proposes raising IBIT options limits to 1M contracts, signaling institutional confidence as BlackRock's ETF gains traction and holders turn profitable. - Krugman links Bitcoin's 30% drop to waning Trump support, contrasting technical optimism while Tom Lee revises $250k target to cautious $100k threshold. - XRP stagnates below $2.30 despite UAE reg

Bitget-RWA2025/11/30 07:08
Bitcoin Updates Today: Technical Optimism and Institutional Interest Face Off Against Broader Economic Challenges

Textbook Liquidation: Monero Whale Faces $1.9M Loss in Leverage Trade

- A Monero whale's 3× leveraged $5.6M long position was liquidated at $0.02298, resulting in a $1.9M loss amid volatile price swings. - The trader initially gained $654K as MON surged but faced rapid reversal, highlighting risks of overleveraging in low-liquidity altcoins. - Analysts warn such high-risk strategies amplify both gains and losses, with liquidation margins often razor-thin in speculative crypto markets. - The event sparked mixed market reactions, with some viewing it as a cautionary tale while

Bitget-RWA2025/11/30 06:50
Textbook Liquidation: Monero Whale Faces $1.9M Loss in Leverage Trade

Bitcoin News Today: BlackRock's ETFs: Institutional Embrace of Bitcoin Drives $245 Million in Revenue

- BlackRock's Bitcoin ETF (IBIT) drove $42.8M inflows on Nov 27, stabilizing BTC's $90K rebound amid macroeconomic uncertainty. - ETFs now hold 3% of Bitcoin's supply and $18.88B in ETH assets, shifting institutional focus from speculation to long-term accumulation. - Grayscale's Zcash ETF filing highlights growing altcoin demand, with ZEC surging 500% in two months amid privacy token trends. - Nasdaq's proposed IBIT options expansion to 1M contracts would align the ETF with major benchmarks like SPY, refl

Bitget-RWA2025/11/30 06:50
Bitcoin News Today: BlackRock's ETFs: Institutional Embrace of Bitcoin Drives $245 Million in Revenue