Stream Finance has halted deposits and withdrawals from its platform in response to the lack of $93 million of “Stream fund assets.”
It blames the loss on an “external fund manager overseeing Stream funds.”
Yesterday, an exterior fund supervisor overseeing Stream funds disclosed the lack of roughly $93 million in Stream fund property.
In response, Stream is within the strategy of partaking Keith Miller and Joseph Cutler of the regulation agency Perkins Coie LLP, to guide a complete…
— Stream Finance (@StreamDefi) November 4, 2025
Simply over per week in the past, issues started to flow into over a tangled net of yield vaults, together with Stream Finance’s xUSD. The excessive yields supplied had been usually propped up by way of looped lending and borrowing of their very own and every others’ property.
Since then, whole worth locked (TVL) on Stream has dropped from a excessive of over $200 million to only $98 million at the moment, per DeFiLlama information.
The platform misplaced $50 million in TVL yesterday alone.
Protos’ earlier reporting regarded right into a “DeFi daisy chain” of lending between Stream Finance’s xUSD, YieldFi’s yUSD and Elixir’s deUSD. A lot of the methods additionally relied on Midas’ mHYPER to better or lesser extent.
The property had been leveraged towards one another on decentralized finance lending platforms comparable to Morpho and Ruler.
These property largely invoice themselves as a variation on “stablecoin-backed market-neutral strategies,” just like Ethena’s USDe.
The Transparency web page of Stream Finance’s web site reads “Coming soon!,” with a hyperlink to a bundle of addresses on portfolio tracker Debank standing in for any detailed proof of reserves.
In response to final week’s criticism, Stream break up up its TVL to point out “user deposits” towards “assets under management” (i.e. the purported worth of leveraged positions).
The info is at present at odds with DeFiLlama’s metrics.
As confidence waned and TVL started to drop, the unwinding of looped positions led to a spike in borrowing charges, with one critic estimating Stream to be paying over half one million {dollars} in curiosity day by day.
X person Yields And Extra posted an evaluation of all vaults and stablecoins “that have (in)direct exposure to Stream.”
We’ll be conserving tabs on this story because it develops and can replace beneath:
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