The synthetic stablecoin USDX, issued by Stable Labs, lost its peg to the U.S. dollar, plummeting over 60% in 24 hours to around $0.30. The incident triggered widespread concern across DeFi protocols and highlighted systemic fragilities in synthetic asset markets.
According to data from DEX Screener, the USDX/WBNB pair on PancakeSwap showed rapid volatility as the token sharply deviated from its target value.
At the time of writing, Stable Labs had not yet issued an official statement.
Market Response and Emergency Measures
Several DeFi projects, including Lista DAO and PancakeSwap, confirmed they are monitoring the situation closely and urged users to review their positions involving USDX.
Lista DAO launched an emergency one-hour governance vote to enable forced liquidations in the USDX/USD1 market in order to mitigate potential losses — the proposal was swiftly approved by the community.
Besides PancakeSwap, USDX is also traded on BitMart, Uniswap, Curve, and Balancer. Stable Labs presents itself as a MiCA-compliant issuer of tokenized assets and stablecoins.
In 2024, the firm raised $45 million at a $275 million valuation from major backers, including NGC Ventures, BAI Capital, Generative Ventures, UOB Venture Management, and investors like Dragonfly Capital and Jeneration Capital.
Whale Activity and Arbitrage Bets
On-chain analysts at Lookonchain reported that a whale wallet spent $800,000 in USDT to buy over 933,000 USDX at $0.857 right after the depeg, potentially securing a $135,000 profit if redemptions restore the peg.
“Brave whale 0xe454 quickly spent 800K USDT to buy 933K USDX right after noticing the depeg — adding to the 1.4M USDX he bought earlier,”
— Lookonchain, November 6, 2025.
Potential Causes and On-Chain Clues
Analysts speculated that the depeg might be linked to the $128 million hack of the Balancer protocol, which likely triggered cascading liquidations of collateral tied to Stable Labs’ strategies.
A researcher from Hyperithm, known as Min, noted that USDX’s reserve portfolio hadn’t been updated for over two months — raising doubts about its active management and the credibility of its delta-neutral and U.S. Treasury yield strategies.
Another trader, Arabe Bluechip, pointed to suspicious activity involving a wallet associated with Stable Labs’ founder Flex Yang, which reportedly used USDX and sUSDX as collateral to borrow USDC, USDT, and USD1 across Euler, Lista, and Silo protocols, at 100% annual interest rates — suggesting potential insolvency risk.
Collateral Damage: Elixir’s deUSD Impact
The turmoil also hit Elixir, which announced it would discontinue support for its deUSD stablecoin following a $93 million exploit at Stream Finance, a protocol that held roughly 90% of deUSD’s supply.
Elixir reported redeeming 80% of circulating deUSD at a 1:1 ratio in USDC, while Stream Finance suspended deposits and withdrawals as its total outstanding debt climbed to $285 million, including $68 million owed to Elixir.
Following the hack, Stream’s xUSD stablecoin crashed to $0.20 before partially recovering to $0.17, according to CoinGecko.
The collapse triggered a chain reaction across DeFi, mirroring earlier cases like Yala, a Bitcoin-backed stablecoin that also lost its peg in September.
