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Stream Finance Freezes Platform After $93 Million Shortfall as XUSD Depegs

Perkins Coie is leading a probe after the DeFi protocol halted activity over a loss disclosed by an external fund manager.

Overview

  • Stream Finance suspended all deposits and withdrawals, with pending deposits on hold until further notice, following the reported loss.
  • The project retained Perkins Coie partners Keith Miller and Joseph Cutler to conduct a formal investigation into the incident.
  • Stream said it is withdrawing remaining liquid assets from external management and expects that process to finish soon.
  • Stream’s stablecoin XUSD fell drastically from its $1 target, trading near $0.50 and dipping to about $0.30 according to CoinGecko reports.
  • Pseudonymous analyst YAM estimates roughly $285 million in loans are secured by Stream-linked collateral across Euler, Morpho and Silo on multiple networks, with additional exposures such as Elixir’s deUSD lending position detailed in his analysis.