General

Emergency Liquidation Vote Underway for USDX

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

Key notes

  • The vote has 18 participants so far, all of whom are voting yes to enabling forced liquidation of the USDX market.
  • MEV Capital set its allocation cap to zero and updated its interest rate model for the USDT/sUSDX market in response.
  • Borrowing rates in the affected vaults reached 800% with no repayments from major borrowers associated with Stables Labs.

Lista DAO launched an emergency governance vote on November 6, 2025, to enable the forced liquidation of the USDX market involving treasuries managed by MEV Capital and Re7 Labs. Voting, called LIP 022, will continue until November 9 at 12:12pm through the Snapshot platform.

At the time of writing, only 18 veLISTA token holders have voted, all of them voting in favor of the liquidation procedure. The proposal targets abnormally high borrowing rates in vaults where additional 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.

Calendar of events

9:23 AM UTC: Lista DAO publicly announced that it was monitoring borrowing rates of up to 800% in the MEV Capital USDT Vault and Re7 Labs USD1 Vault. The protocol specified that no payments would be made from major borrowers associated with Stables Labs using collateral assets of $sUSDX and $USDX, according to the DAO. Lista called on institutional vault managers to take immediate responsibility and transparency to protect users.

10:55 AM UTC: Re7 Labs submitted 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 vote on the ruling to enable the liquidation process.

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

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

11:50 AM UTC: MEV Capital acknowledged higher borrowing rates in the 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 involved in Stream Finance’s $93 million loss, as xUSD collateral contributed to the protocol’s failure.

The vote will determine whether Lista DAO will continue with the Oracle bypass 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 ends.

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As a Web3 marketing strategist and former DuckDAO CMO, Zoran Spirkovski translates complex coding concepts into compelling narratives that drive growth. With a background in cryptocurrency journalism, he excels at developing go-to-market strategies for DeFi, L2, and GameFi projects.

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