Synthetic stablecoin USDX depegs below $0.60, PancakeSwap and Lista monitoring the situation
Synthetic stablecoin USDX from Stable Labs depegged below $0.60, prompting monitoring by PancakeSwap and Lista DAO.Summary
USDX, a synthetic stablecoin issued by Stable Labs, experienced a significant depeg, trading below $0.60 despite having a circulating supply of $683 million. Protocols integrating USDX, such as Lista DAO and PancakeSwap, have issued statements confirming they are closely monitoring the situation to mitigate potential fallout. Lista DAO noted abnormal borrowing rates without repayment in its MEVCapital USDT Vault and Re7Labs USD1 Vault involving collateral assets ($sUSDX and $USDX).
The cause of the depeg is unclear, but speculation suggests a link to the recent $128 million Balancer exploit, potentially leading to forced liquidations of Stable Labs’s hedged shorts. Furthermore, a wallet linked to Stable Labs founder Flex Yang was observed draining liquidity from USDX collateral to swap for other stablecoins like USDC and USDT on protocols like Euler and Lista, paying extremely high borrow interest.
In response, Lista DAO initiated an emergency vote to liquidate its USDX/USD1 vault with Re7 Labs' assistance to minimize losses, successfully executing a flash loan to liquidate over 3.5 million USDX and recover USD1 tokens. Re7 Labs also disclosed exposure in some vaults to Stream Finance's xUSD stablecoin, which recently lost its peg.
(Source：The Block)