On November 6, 2025, following an emergency governance approval of LIP-022, Lista DAO executed a forced liquidation of loans in the USDX/USD1 vault, curated by Re7 Labs, in response to escalating risks associated with the USDX token (backed by Stables Labs). Following this liquidation, many users were able to get their funds back before USDX depegged. Here is a quick cap of this incident:

As a decentralized DeFi protocol, Lista allows permissionless vault creation and C2C lending/borrowing activities. Lista has no direct control over third-party vaults — these are independent entities built on top of Lista’s infrastructure. This decentralized structure, while promoting innovation and ecosystem growth, means that Lista cannot unilaterally intervene in third-party vault operations nor exert any control over its assets.

On June 5, 2025, Re7 Labs created the Re7 USD1 vault with a USDX market on Lista and, within a few months, accrued millions of dollars worth of assets. At the end of October, however, USDX token risks began escalating and the aforementioned Re7 vault had a significant exposure on USDX. Following our communications with Re7 Capital and with their consent in text form, Lista initiated an emergency governance vote to authorize the forced liquidation. This was the only measure Lista could take under the circumstances — one that could curb the losses for our users while retaining our decentralized governance structure.

More details and numbers about the Re7 vault liquidation can be found in this post.

While the liquidation managed to retrieve millions of dollars worth of assets for the community, we still receive a few questions about this process:

Why must there be a vote before the liquidation?

As a decentralized DeFi protocol, Lista DAO must submit all proposals (LIPs) to be voted on by veLISTA holders. This has been, and will continue to be, the best way for active members in our community to influence and shape the future development of Lista DAO.

Why was the liquidation initiated a few minutes before the designated time?

A few minutes into the voting process, an overwhelming majority of veLISTA holders have already voted in support of this forced liquidation. Considering the diminishing liquidity available on PancakeSwap, any delay could result in significant losses to our users. In light of these circumstances, Lista decided to execute the liquidation a few minutes earlier, as stated in the proposal.

Why was the withdrawal process on a first-come-first-served basis?

Once the liquidation was processed, this was the fastest way for users to get their assets back while there’s still enough liquidity in the PancakeSwap pools. As we stated in the LIP-022 proposal, this is the standard procedure for every liquidation process and any change in the distribution mechanics would require tweaking the smart contract — spending more time that we didn’t have.

How will the ~$480,000 profit be distributed to Re7 vault depositors?

The liquidation netted a total of 481,801.15 USD1 in profit. As per our latest proposal, LIP-023, the voting result is in favor of distributing these assets on a pro rata basis to vault depositors.

To claim your share, head to the claim page, connect your wallet, check your eligibility, click on ‘Claim’, and it’s done.

Please read these rules carefully before making your claim:

1. The amount of USD1 you are eligible to claim is proportional to your share of the Re7 USDX/USD1 vault. If your collateral provision amounts to 1% of the vault’s total value, you will be eligible to claim 1% of the total 481,801.15 USD1, which is 481.80 USD1.

2. A snapshot was taken on November 15, 2025 to confirm every depositor’s eligibility. You must be holding this token when the snapshot was taken and the amount of USD1 you are eligible to claim depends on your holdings of the same token.

3. When you make your claim, our smart contract will transfer a portion of your Re7 vault token to Lista — with the same face value as the amount of USD1 you claim — as a certificate for Lista taking the bad debt. We advise you not to transfer your Re7 vault tokens before making your claim.

4. You must claim all USD1 you are eligible for in one transaction. There is no time limit so you can make your claim at any time in the future as long as you have enough Re7 vault tokens in your wallet.

On November 6, 2025, following an emergency governance approval of LIP-022, Lista DAO executed a forced liquidation of loans in the USDX/USD1 vault, curated by Re7 Labs, in response to escalating risks associated with the USDX token (backed by Stables Labs). Following this liquidation, many users were able to get their funds back before USDX depegged. Here is a quick cap of this incident:

As a decentralized DeFi protocol, Lista allows permissionless vault creation and C2C lending/borrowing activities. Lista has no direct control over third-party vaults — these are independent entities built on top of Lista’s infrastructure. This decentralized structure, while promoting innovation and ecosystem growth, means that Lista cannot unilaterally intervene in third-party vault operations nor exert any control over its assets.

On June 5, 2025, Re7 Labs created the Re7 USD1 vault with a USDX market on Lista and, within a few months, accrued millions of dollars worth of assets. At the end of October, however, USDX token risks began escalating and the aforementioned Re7 vault had a significant exposure on USDX. Following our communications with Re7 Capital and with their consent in text form, Lista initiated an emergency governance vote to authorize the forced liquidation. This was the only measure Lista could take under the circumstances — one that could curb the losses for our users while retaining our decentralized governance structure.

More details and numbers about the Re7 vault liquidation can be found in this post.

While the liquidation managed to retrieve millions of dollars worth of assets for the community, we still receive a few questions about this process:

Why must there be a vote before the liquidation?

As a decentralized DeFi protocol, Lista DAO must submit all proposals (LIPs) to be voted on by veLISTA holders. This has been, and will continue to be, the best way for active members in our community to influence and shape the future development of Lista DAO.

Why was the liquidation initiated a few minutes before the designated time?

A few minutes into the voting process, an overwhelming majority of veLISTA holders have already voted in support of this forced liquidation. Considering the diminishing liquidity available on PancakeSwap, any delay could result in significant losses to our users. In light of these circumstances, Lista decided to execute the liquidation a few minutes earlier, as stated in the proposal.

Why was the withdrawal process on a first-come-first-served basis?

Once the liquidation was processed, this was the fastest way for users to get their assets back while there’s still enough liquidity in the PancakeSwap pools. As we stated in the LIP-022 proposal, this is the standard procedure for every liquidation process and any change in the distribution mechanics would require tweaking the smart contract — spending more time that we didn’t have.

How will the ~$480,000 profit be distributed to Re7 vault depositors?

The liquidation netted a total of 481,801.15 USD1 in profit. As per our latest proposal, LIP-023, the voting result is in favor of distributing these assets on a pro rata basis to vault depositors.

To claim your share, head to the claim page, connect your wallet, check your eligibility, click on ‘Claim’, and it’s done.

Please read these rules carefully before making your claim:

1. The amount of USD1 you are eligible to claim is proportional to your share of the Re7 USDX/USD1 vault. If your collateral provision amounts to 1% of the vault’s total value, you will be eligible to claim 1% of the total 481,801.15 USD1, which is 481.80 USD1.

2. A snapshot was taken on November 15, 2025 to confirm every depositor’s eligibility. You must be holding this token when the snapshot was taken and the amount of USD1 you are eligible to claim depends on your holdings of the same token.

3. When you make your claim, our smart contract will transfer a portion of your Re7 vault token to Lista — with the same face value as the amount of USD1 you claim — as a certificate for Lista taking the bad debt. We advise you not to transfer your Re7 vault tokens before making your claim.

4. You must claim all USD1 you are eligible for in one transaction. There is no time limit so you can make your claim at any time in the future as long as you have enough Re7 vault tokens in your wallet.