New form of lace — it’s stretchy (7)
I believe the answer is:
elastic
'stretchy' is the definition.
('elastic' can be similar in meaning to 'stretchy')
'new form of lace it's' is the wordplay.
'new form of' indicates anagramming the letters.
'lace'+'its'='laceits'
'laceits' anagrammed gives 'ELASTIC'.
(Other definitions for elastic that I've seen before include "Flexible rubbery strip" , "Something stretchy" , "Pliable" , "Able to give a bit" , "capable of adapting to change?" .)