Re7 Labs Faces Backlash Over Inadequate Response to Market Crisis
Re7 Labs has drawn sharp criticism for issuing a retrospective report instead of actionable solutions amid ongoing market turmoil. The firm's post, framed as an update on mitigation efforts, exacerbated frustrations rather than calming stakeholders.
The detailed account outlined reactive measures across multiple markets—xUSD Euler, deUSD, sdeUSD on Plume, and sUSDX/USDX on BSC. In each case, Re7 Labs acknowledged delayed responses, including allowing unchecked borrowing in Euler Earn USDT vaults until risks became untenable. The team only imposed caps and fund reallocations after discovering Stream's borrowing against Elixir assets.
Notably, xUSD concerns were dismissed pre-crash with unverified assurances from Stream's CEO. This pattern of belated intervention has eroded confidence in Re7 Labs' risk management protocols during volatile conditions.
