According to Techub News, Re7 Labs released an impact report early this morning, stating that it has been affected by approximately $27 million in total due to risks associated with stablecoin protocols such as Stream. Re7 Labs indicated that Stream has repaid some of its loans on Plasma and $7 million in USDC loans on WorldChain, and has removed the xUSD market. For deUSD and sdeUSD issued by Elixir, the cap has been lowered and funds have been transferred out of the relevant markets. All lending positions on Plume using sdeUSD as collateral have been repaid, but nearly $14 million in positions remain affected on WorldChain's Morpho market and on Avalanche and Plasma's Eluer market.
Re7 Labs also stated that it discovered suspicious lending activities by Stables Labs on November 4th and demanded full repayment by November 5th. After the deadline, communication with founder Flex Yang revealed several inconsistencies, and subsequently coordinated with Lista DAO to liquidate the corresponding positions. Currently, the total positions affected by USDX and sUSDX exceed $13 million. Re7 Labs stated that it is maintaining communication with contributors, external partners, and legal counsel, and is seeking legal advice to comprehensively assess and develop appropriate legal and strategic responses.
