On November 6, the synthetic “stablecoin” USDX by Stable Labs lost its peg to the US dollar. Over 24 hours, the token fell by more than 60% to $0.30.
At the time of writing, the issuer’s team had not commented. Several projects — Lista DAO and PancakeSwap — issued preliminary statements, saying they were monitoring developments and advising users to check positions involving USDX.
Our team is also aware of the situation involving the affected vaults and are monitoring it closely. Please review and monitor your positions involving these vaults on PancakeSwap. We’ll continue to stay updated and share information as needed.
Stay SAFU. https://t.co/tHpY2Z0L5J
— PancakeSwap (@PancakeSwap) November 6, 2025
Later, Lista DAO launched an emergency vote to enable forced liquidation in the USDX/USD1 market to minimise potential losses.
📢 LIP 022 — Emergency Vote: Enabling Forced Liquidation for USDX Market (re7 vault)
This proposal is being put forward as an emergency one-hour vote, following a request from the vault curator, to enable forced liquidation mechanisms for the USDX/USD1 market.
🔹The @Re7Labs… pic.twitter.com/cs9ynd3XOH— Lista DAO (@lista_dao) November 6, 2025
The majority voted in favour.
Beyond PancakeSwap, USDX also trades on BitMart, Uniswap, Curve and Balancer. Stable Labs, its issuer, presents itself as a MiCA-compliant issuer of stablecoins and tokenised assets.
In 2024 the company raised $45m at a $275m valuation from NGC, BAI Capital, Generative Ventures and UOB Venture Management. Other backers include Dragonfly Capital and Jeneration Capital.
Amid the depeg, a whale spent 800,000 USDT to buy 933,241 USDX at $0.8572. If the stablecoin returns to its $1 target, the potential gain could be around $135,000, Lookonchain analysts noted.
USDX has depegged to $0.3887.
Brave whale 0xe454 quickly spent 800K $USDT to buy 933,241 $USDX at $0.8572 right after noticing the depeg — adding to the 1.4M $USDX he bought a week ago, all submitted for redemption.
If redemption succeeds, he’ll net around $135K in profit.
But… pic.twitter.com/bQ1Pv6Wdw3
— Lookonchain (@lookonchain) November 6, 2025
Possible causes
Some analysts suggested that the USDX depeg is linked to the fallout from the hack of the Balancer DeFi protocol, which lost $128m. The attack may have triggered a cascade of liquidations of Stable Labs’ hedged positions.
A researcher at Hyperithm, known as Min, noted that the stablecoin’s portfolio composition had not been updated for more than two months.
USDX claims to generate yield through delta-neutral and U.S. Treasury strategies, but as far as I can tell, their portfolio hasn’t changed in over two months.
Are they actually doing any active management?
At one point, they even had weird alts like BANANA31 in the portfolio. pic.twitter.com/KDqSqZF5yD
— Min l Hyperithm (@ingerxyz) November 6, 2025
A trader known as Arabe Bluechip pointed out that early in the week a wallet associated with the Stable Labs founder began using USDX and its sUSDX version as collateral to borrow other coins, including USDC, USDT and USD1 via Euler, Lista and Silo.
Perhaps @StablesLabs can clarify why founder Flex Yang’s wallet is linked to these addresses
It appears that all USDC / USD1 / USDT liquidity was drained by sUSDX / USDX as collateral in Euler / Lista / Silo, paying 100% borrow interest with seemingly no intent to repay.…
— Arabe ₿luechip (@arabebluechip) November 5, 2025
The annualised interest rate on those positions reached 100%, leading Arabe Bluechip to suspect the borrower had no intention of repaying.
Fallout from the Stream Finance hack
DeFi protocol Elixir said it would stop supporting its deUSD stablecoin after the Stream Finance hack.
Elixir has worked tirelessly over the previous 48 hours and has successfully processed redemptions of 80% of all deUSD holders thus far (not including Stream).
As it stands now, Stream holds roughly 90% of the deUSD supply (~$75m), while Elixir holds a similar proportion of its…
— Elixir (@elixir) November 6, 2025
According to the latest update, the team has already redeemed about 80% of coins from holders at a 1:1 rate in USDC.
Stream Finance’s developers suspended withdrawals and deposits on November 4 after a $93m hack. The protocol’s total debt to creditors exceeds $285m, $68m of which is owed to Elixir.
Launched in mid-2024, deUSD was pitched as an alternative to Ethena Labs’ synthetic dollar, USDe. Stream Finance used the coin to back its own xUSD stablecoin, which depegged after the hack and crashed to $0.20.
At the time of writing, the stablecoin had recovered to $0.17, according to CoinGecko.
Its collapse set off a chain reaction, hitting Elixir’s asset in particular.
In September, the bitcoin-backed “stablecoin” Yala suffered a depeg.