Key Takeaways (Because Who Has Time for the Whole Story?)
What caused the USDX crash? 🧐
Apparently, Flex Yang’s wallet was caught red-handed draining USDC, USD1, and USDT liquidity using USDX as collateral. Classic “I’ll just take the money and run” move. 🤦♂️
How did lending protocols respond? 🤖
Lista DAO hit the panic button with emergency proposal LIP022, liquidating faster than I liquidate my Netflix queue. Almost done, they say. Sure, Jan. 😏
USDX took a nosedive today, plummeting from $1 to $0.37 in a 63% crash. Traders are pointing fingers at Stables Labs founder Flex Yang, accusing him of pulling a Houdini on DeFi liquidity. Panic? More like a full-blown circus. 🎪
The stablecoin hit rock bottom at 4:15 PM GMT on 6 November, touching $0.37 before bouncing back to $0.70. CoinGecko data says so, but who trusts numbers anymore? 🤷♂️
Flex Yang: DeFi’s New Villain? 🎭
The drama started on 5 November when some crypto Sherlock on X linked Flex Yang’s wallet to addresses draining liquidity. Using sUSDX and USDX as collateral across Euler, Lista, and Silo? Bold move, Cotton. Let’s see if it pays off. (Spoiler: It didn’t.) 💥
“Someone drained all USDC / USD1 / USDT liquidity using sUSDX / USDX as collateral,” Arabe Bluechip tweeted. “They’re paying 100% borrow interest with no intent to repay.” Genius? Or just plain stupid? You decide. 🤔
Why borrow against USDX while burning 100% interest? Why not just redeem for USDT? Maybe Flex was just trying to spice up his life. We’ve all been there. 🌶️
Protocols in Full-On Panic Mode 🚨
Lista DAO confirmed the crisis at 9:23 AM GMT on 6 November. They’d been monitoring MEV Capital’s USDT Vault and Re7 Labs’ USD1 Vault, which were showing “abnormally high borrowing rates without repayment activity.” Shocking. Absolutely shocking. 😲
Lista called out MEV Capital and Re7 Labs, demanding they “take immediate responsibility.” Because nothing says accountability like a public shaming. 👀
Emergency Vote: DeFi’s Version of a Fire Drill 🔥
Lista DAO called an emergency vote, and the community passed LIP022 faster than I finish a bag of chips. Liquidation proceedings? Nearly complete. Re7 Labs played nice, cutting the USDX/USD1 market interest rate to 3%. Leftover positions? Thrown into a public liquidation pool. Because why not? 🏊♂️
What Does This Mean? (Besides Chaos) 🌪️
USDX trading volume went through the roof during the crisis. The token swung more than a pendulum in a hurricane. This depeg is 2025’s worst stablecoin failure, raising serious questions about collateral management in DeFi. But hey, at least it’s entertaining. 🎢
Rise reports over nine stablecoin depeg events in 2025, all resolved within hours. But this one? Still a mess. Stables Labs? Radio silent. No allegations addressed, no depeg explanation. Classic. 🙄
The DeFi community is waiting for answers. Liquidity drainage? Recovery plans? Flex Yang’s next move? Stay tuned, folks. This show’s just getting started. 🎬
The situation continues to develop. Or unravel. Potato, potahto. 🥔
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2025-11-07 03:08