LIP#05 - Support ListaDAO’s Proposal to Return Re7 Vault Liquidation Profit

Abstract

This proposal seeks to support the return of 481,801.15 USD1 in liquidation profit, accrued during the liquidation of the Re7 USD1 Vault, to affected Vault LP token holders. The redistribution will be conducted via a redeem contract, with eligibility determined by a snapshot of LP token holdings taken immediately after the voting period concludes.

Motivation

Following LIP #22 and a significant liquidation event, part of the recovered funds amounting to 481,801.15 USD1 were retained by ListaDAO’s treasury. While $3 million was immediately recovered, some Vault suppliers remain unable to withdraw their funds. In line with fair protocol governance and to safeguard community trust, this proposal advocates for returning the liquidation profit pro rata to LP token holders. The approach ensures that impacted users receive equitable treatment and supports long-term confidence in the ecosystem.

Specification

Vote on whether Listapie should support ListaDAO’s proposal to redistribute 481,801.15 USD1 in liquidation profit to eligible Re7 USD1 Vault LP token holders