The recent de-pegging of xUSD has sent ripples through the DeFi market, causing concerns about systemic risks within this space. Despite these challenges, Stream Finance has confirmed its stability and is actively addressing the situation. Following the incident, Re7 Labs, which held a large stake in xUSD, withdrew all funds from the market to mitigate further losses. This decision comes after they transferred $7 million in USDC from their vault to bolster financial stability. Additionally, legal experts have been hired for a comprehensive response. 13 million dollars of funds linked to Stable Labs were affected by the event, reflecting wider concerns about instability within the DeFi ecosystem. Experts have highlighted the need for caution and emphasized the importance of robust smart contract protocols.