TechFlow, November 9 — Re7 Labs has released a report on the impact of xUSD's depegging, with over $13 million in funds affected due to Stable Labs. The report states:
1. Stream-xUSD: The CEO of Stream has assured that its financial position remains stable and unaffected by market events. Stream has partially repaid loan positions on Plasma and withdrawn $7 million worth of USDC from Re7 Labs' vault on Worldchain. Meanwhile, to prevent further exposure, Re7 Labs has moved all funds from the Earn vault out of the xUSD market. Additionally, the supply cap for the xUSD market has been set to 0, and it has been removed from the Euler Earn vault’s supply queue.
2. Elixir-deUSD and sdeUSD: Last week, after identifying potential links between borrowers using deUSD and sdeUSD as collateral and Stream, Re7 Labs began reducing exposure to both Stream and Elixir. Specific actions included lowering investment caps and withdrawing funds from markets involving xUSD, deUSD, and sdeUSD. All borrowing positions backed by sdeUSD collateral on Plume have now been fully repaid.
3. Stable Labs-USDx and SUSDx: This week, Re7 Labs communicated with Flex, CEO of Stable Labs, and found he may be facing difficulties. Re7 Labs has requested that he deposit liquidity to allow users to close their positions. Approximately $13,114,000 in funds are impacted by Stable Labs, and no response has been received yet.
Re7 Labs stated it is currently seeking legal advice and will develop appropriate legal and strategic responses after a comprehensive assessment of all aspects of the incident.
