Stream Finance pauses platform after finding $93M loss

Decentralized finance platform Stream Finance has temporarily suspended all deposits and withdrawals after an external fund manager overseeing its assets reported a $93 million loss on Sunday. The project has hired lawyers from Perkins Coie to investigate the incident and is actively withdrawing all liquid assets. This situation caused Stream Finance's collateralized stablecoin, Staked Stream USD (XUSD), to depeg significantly, dropping to as low as $0.51. Users had sensed trouble before the official announcement as withdrawals were paused without communication. The platform, which focuses on "recursive looping" yield, had recently addressed community concerns regarding discrepancies in its Total Value Locked (TVL) reporting compared to DefiLlama, highlighting the risks associated with complex DeFi strategies.

(Source：Cointelegraph)