# \[MIP #88\] - Support Redistribution of Liquidation Profit to Re7 Vault LPs

**URL:** https://gov.magpiexyz.io/t/mip-88-support-redistribution-of-liquidation-profit-to-re7-vault-lps/745
**Category:** 4. Magpie Improvement Proposals
**Created:** [November 12, 2025, 3:02pm UTC](https://gov.magpiexyz.io/t/mip-88-support-redistribution-of-liquidation-profit-to-re7-vault-lps/745 "2025-11-12T15:02:05Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![Desmen](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.magpiexyz.io/desmen/32/84_2.png) [@Desmen](https://gov.magpiexyz.io/u/Desmen)
#### Post date: [November 12, 2025, 3:02pm UTC](https://gov.magpiexyz.io/t/mip-88-support-redistribution-of-liquidation-profit-to-re7-vault-lps/745/1 "2025-11-12T15:02:05Z")

</div>

## Abstract

This proposal asks vlMGP holders to decide whether Magpie should support Listapie’s LIP #05, which proposes redistributing 481,801.15 USD1 in liquidation profit to affected Re7 USD1 Vault suppliers. The funds would be claimable via a redeem contract. For more details, please refer to LIP-23 [ListaDAO’s original proposal](https://snapshot.org/#/s:listavote.eth/proposal/0x5ada27a430fdc9961a7e25ea9f30cd3713895076b274ad78988fbbe9e2d9b271).

## Motivation

As Magpie holds governance power in Listapie, it is essential that vlMGP holders guide how that influence is used on proposals impacting the underlying ecosystem. LIP #05 aims to uphold user trust by fairly distributing liquidation profit to impacted Vault LPs. Consulting vlMGP holders ensures alignment between Magpie’s governance actions and its stakeholders’ interests.

## Specification

Vote on whether Magpie should support [Listapie’s LIP #05](https://gov.magpiexyz.io/t/lip-05-support-listadao-s-proposal-to-return-re7-vault-liquidation-profit/744) to redistribute 481,801.15 USD1 in liquidation profit to affected Re7 USD1 Vault LPs.