Re7 Labs releases report on xUSD de-pegging incident: They are communicating with external partners and legal counsel to develop a response strategy.

Re7 Labs posted on the X platform that it has taken measures to resolve and mitigate issues in multiple markets, including xUSD, deUSD, sdeUSD, sUSDX, and USDX. The post included a recap of the events: 1. Stream (xUSD): In early October, Re7 Labs discovered that Stream was using its xUSD token as collateral to borrow USDT0. Despite assurances from Stream's CEO that the position was stable, the outstanding position subsequently began generating high borrowing rates. On October 29th, Re7 Labs contacted Stream again, and Stream subsequently repaid a portion of the loan. To prevent further risk, Re7 Labs has removed all funds from the xUSD market and halted new deposits in that market. 2. Elixir (deUSD and sdeUSD): On October 21, Elixir requested an allocation of $6 million to $7 million in the Re7 Labs Euler Earn USDT0 vault. The funds were subsequently lent out, causing 100% market utilization for both sdeUSD and deUSD. On October 27, Re7 Labs discovered the borrower's connection to Stream and began reducing its exposure to Stream and Elixir. On November 6, all borrowing positions on Plume using sdeUSD as collateral were fully repaid. The total impact of Elixir was approximately $13.974 million. 3. Stable Labs (USDx and SUSDx): On November 4, Re7 Labs detected transfers from accounts associated with the largest holders of sUSDX and USDX to Binance, while lending rates surged. After failing to reach an agreement with Stable Labs CEO Flex, Re7 Labs implemented protective measures such as lowering supply limits and adjusting risk parameters. On November 6, Lista resolved the malicious position through a DAO proposal, avoiding approximately $3 million to $4 million in bad debt. The total impact caused by Stable Labs was approximately $13.114 million. Re7 Labs stated that it is currently communicating with external partners and legal counsel, seeking detailed legal advice to develop a response strategy.