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Lista DAO Treasury Hits 99% Utilization, Forcing Liquidation

Lookonchain data shows MEV Capital and Re7 Labs’ pools in Lista DAO reached critical utilization, prompting asset liquidation and highlighting widespread high-risk conditions in DeFi protocols.

Summary

Lookonchain reports that MEV Capital and Re7 Labs’ pools within Lista DAO hit 99% utilization on Nov. 6, triggering a forced liquidation. The event underscores elevated risk levels, as multiple DeFi platforms are exceeding 90% utilization, indicating a strain on available liquidity across the sector.

Terms & Concepts
  • DAO: A decentralized autonomous organization that operates through blockchain-based governance rules without centralized control.
  • DeFi: Short for decentralized finance, refers to blockchain-based financial services that operate without traditional intermediaries like banks.
  • Forced liquidation: The automatic sale of assets triggered when collateral utilization reaches a predefined threshold, protecting lenders from losses.