Main highlights:
- Lista DAO is pressuring MEV Capital and Re7 Labs for non-payment.
- An emergency governance vote has been initiated by ListaDAO.
- The incident raised concerns about asset safety and transparency in decentralized lending.
Lista DAO is stepping up its efforts to hold MEV Capital and Re7 Labs accountable and accountable due to persistent liquidity issues within the vault. Concerns are growing over rising borrowing rates and lack of repayment activity on collateral assets. Due to the increased risk to the lenders of the MEV Capital USDT and Re7 Labs USD1 vaults, immediate governance measures were taken and lending protocols were required to consider immediate emergency liquidation measures.
We are aware of this issue and have been monitoring it closely. @MEVCapital USDT Vault and @Re7Labs USD1 Vault, collateral assets ($sUSDX and $USDX) continues to face unusually high borrowing rates with no repayment activity taking place.
As an on-chain P2P lending protocol, Lista Lending…
— Lista DAO (@lista_dao) November 6, 2025
Recently, both vaults have been exhibiting highly unusual borrowing dynamics, which has prevented users from successfully closing their positions. Lista DAO, which operates as an on-chain peer-to-peer lending protocol, has confirmed that collateral assets used within its vaults (sUSDX and USDX) continue to face high borrowing rates without offset in repayment flows.
“As an on-chain P2P lending protocol, Lista Lending is actively engaging with both teams to resolve the situation,” DAO said in a public post on X (formerly Twitter). “Continuing to delay and do nothing will not solve the problem. we strongly urge MEV Capital and Re7 lab Take immediate responsibility, finalize decisions, communicate transparently, and work with us to protect our users and restore market balance. ”
unresolved market imbalance
This situation raises concerns about a possible knock-on effect across the DeFi lending space. In the absence of repayments, the level of collateral in the vault can decline rapidly, eroding liquidity and potentially reducing confidence in the linked assets. The DAO believes that this issue is not a smart contract issue, but rather due to improper management and abnormal vault handling.
Many users on social media agree with Lista DAO’s warning and are calling on the teams involved to share clearer details on how they plan to fix these liquidity gaps. Market analysts say such on-chain lending issues could quickly spill over into related liquidity pools, especially if stable asset pairs such as USDX and sUSDX are affected.
Lista DAO said the team is already in direct discussions with MEV Capital and Re7 Labs and is pushing for swift action. The DAO reiterated its commitment to providing open updates and protecting users, and said governance tools will be used if these consultations do not lead to a solid solution.
Re7 Labs releases statement
Against this backdrop, Re7Labs released an official statement on the Lista DAO Discord, explaining its plans for handling assets in the USDX market. The update was confirmed using Telegram details shared with DAO and marks the first official comment from Re7 Labs since the issue arose.
In response, Lista DAO said it would begin a governance process and suggested that liquidation could be used next to avoid larger losses across the lending platform.
update:
We have received an official statement from @Re7Labs Ask us on our Discord about the proposed plan for asset treatment in the USDX market.
link:In light of this update, Lista DAO will soon begin a governance vote to proceed with market clearing… pic.twitter.com/IX0ZFgXfJw
— Lista DAO (@lista_dao) November 6, 2025
Emergency voting LIP022 introduced
Subsequently, Lista DAO launched an emergency governance vote entitled “LIP 022 Emergency Vote: Enabling forced liquidation of the USDX market (re7 vault).” This action was requested by the vault administrator, who asks them to enable forced liquidation tools for the USDX/USD1 market to reduce risk and restore stability.
📢 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
Voting will be valid for one hour in the snapshot, and veLISTA token holders are requested to vote without delay. Votes cast after the end of the Period will not change the final decision and the results will become effective immediately after the end of the Period.
There are only two voting options: “Yes” and “No.” If voters select “Yes,” they will be voting in favor of initiating a forced liquidation of the USDX market on Lista Lending. If voters choose “no,” they would be voting to reject the plan and not change the status quo.
Lista DAO explained that if volatility increases or liquidity issues worsen, emergency measures may be taken even before the voting closes. Suggested links were posted on X and Discord.
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