StraitsX USD (XUSD)

🚨The chain reaction of USDX is still ongoing丨Those doing on‑chain yield farming recently need to be really careful!

I previously, because of a Buildpad token sale, was lazy with the remaining USD1 and just put it straight into @lista_dao for yield farming.

Coincidentally, I chose the Re7 USD1 vault, with an annual yield of about 30%.

Unexpectedly, a few days ago Stream Finance collapsed, causing xUSD‑related assets to depreciate, and because the collateral and recursive loops between xUSD→USDX/sUSDX are highly overlapping, it directly affected the Re7 USD1 Vault that supported USDX collateral.

When USDX fell to 0.68, the collateral value evaporated by 30% instantly, LTV passively increased, and borrowers couldn’t top up positions or repay.

Even though Lista urgently removed the interest‑rate ceiling, no one repaid, and liquidity was completely drained.

A friend just reminded me to check the vault; when I looked inside, I found a bad debt of 2,000,000, unable to withdraw even a cent.

Fortunately, @lista_dao responded relatively quickly, voting to start liquidation. Current liquidation progress:

- Liquidated: 3,526,011 USDX
- Recovered: 2,927,163 USD1
- Remaining: 180w of debt moved to the public liquidation zone

I managed to pull out a few thousand U right before the latest liquidity injection, instant arrival, so it was a false alarm.

Brothers who haven’t withdrawn can watch the liquidation zone and vault page: 👉 https://t.co/v9GhRnHDxu

Keep refreshing; each liquidation releases some liquidity, withdraw immediately when available.

Sigh, the whole process was another lesson!——

In on‑chain yield farming, risk never starts only on the day of a collapse; it’s:

One more layer of design, one more layer of risk.
One more layer of interaction, one more layer of risk.

All high‑yield yields are essentially dreaming on someone else’s leverage. When the dream ends, even the principal becomes part of the liquidity.

I have new thoughts on on‑chain Low Risk DeFi and the Curator model; I’ll write a separate piece sometime!

By the way, another MEV USDT Vault on Lista is in the same situation, but it seems liquidation hasn’t started yet; currently there’s 11,800,000 bad debt, hope it gets resolved smoothly!

After all, in times like these, every U is hard‑won!