The chain reaction of USDX is still continuing | Those who have been doing on chain wealth management recently should be really careful! I was too lazy to spend the remaining USD1 on Buildpad before, so I put it directly into @ lista_dao for financial management. Coincidentally, I chose Re7's USD1 vault, which has an annualized rate of approximately 30%. I didn't expect Stream Finance to explode a few days ago, causing depreciation of xUSD related assets. There is a highly overlapping collateral and recursive loop chain between xUSD → USDX/sUSDX, which directly affects the Re7 USD1 Vault that supports USDX collateral. After USDX fell to 0.68, the collateral value evaporated by 30% in an instant, and LTV passively increased. Borrowers were unable to replenish their positions or repay their debts. Even though Lista urgently removed the interest rate cap, no one repaid it, and liquidity was completely depleted. Just now, a friend reminded me to take a look at the vault. Upon entering, I found that a bad debt of 200000 yuan had already formed, and I couldn't withdraw a penny. Fortunately, @ lista_dao responded promptly and directly voted to intervene in the liquidation. Current liquidation progress: -Liquidation: 3526011 USDX -Recovered: 2927163 USD1 -Remaining: 180wu of debt has been moved to the public liquidation area I withdrew several thousand U in time for the liquidity replenishment just now and received it in seconds, which was a false alarm. Brothers who haven't withdrawn can keep an eye on the clearing area and vault pages: https://lista.org/lending/liquidation Continuously refreshing and clearing a transaction will release some liquidity, which can be immediately withdrawn. Hey, the whole process is like learning another lesson! —— In the field of on chain financial management, risks never start on the day of the explosion, but rather: One more layer of design, one more layer of risk. One more layer of interaction, one more layer of risk. All high-yield financial management is essentially dreaming on someone else's leverage. When the dream awakens, even the principal is a part of liquidity. I have some new ideas about Low Risk DeFi and Curator models on the chain. I will write a separate article at some time! By the way, another MEV USDT Vault on Lista is also in the same situation, but it seems that it has not been cleared yet. Currently, there are 1180w bad debts, and I hope it can be resolved smoothly! After all, at this time, every U is hard won!