Stream Finance suspended deposits and withdrawals after an exterior fund supervisor overseeing the protocol’s funds disclosed a lack of about $93m in fund belongings, it mentioned Tuesday.
The staff mentioned it has retained Keith Miller and Joseph Cutler of regulation agency Perkins Coie to analyze the incident.
“We’re actively withdrawing all liquid belongings and anticipate this course of to be accomplished within the close to time period,” Stream mentioned, including that periodic updates will comply with as extra data turns into out there.
Till the scope and explanation for the loss are identified, Stream mentioned all withdrawals and deposits will stay paused. “Any pending deposits won’t be processed at the moment,” the assertion mentioned.
Yesterday, an exterior fund supervisor overseeing Stream funds disclosed the lack of roughly $93 million in Stream fund belongings.
In response, Stream is within the technique of partaking Keith Miller and Joseph Cutler of the regulation agency Perkins Coie LLP, to guide a complete…— Stream Finance (@StreamDefi) November 4, 2025
Stablecoin XUSD Plunges as Merchants Rush to Exit After Loss Disclosure
The announcement hit sentiment throughout the protocol’s ecosystem. Earlier, its staked stablecoin XUSD broke from its $1 peg, dropping as a lot as 58% in 24 hours. Merchants pointed to heavy promoting on Arbitrum-based venues as confidence slipped.
The disclosure went stay round 12.45 pm UTC, in a window that additionally noticed studies of a giant multichain exploit on Balancer. Whereas the occasions seem unrelated, the overlap in timing amplified anxiousness throughout pockets of DeFi and accelerated defensive positioning.
Inside hours, aggressive XUSD-to-USDC swaps on Camelot and Uniswap drove XUSD from $1 to $0.92. As Stream confirmed the freeze on deposits and withdrawals pending the investigation, bids thinned and the worth slid additional.
Between 6.00 pm UTC on Nov. 3 and a pair of.00 am UTC on Nov. 4, liquidations and arbitrage stress pushed XUSD to about $0.43.
#PeckShieldAlert Staked Stream USD $XUSD has depegged, down ~58%. @StreamDefi https://t.co/otLGs1Ti9t pic.twitter.com/lziLZj2QSO
— PeckShieldAlert (@PeckShieldAlert) November 4, 2025
No Proof of Direct Exploit, However Leverage Considerations Deepen
On-chain watchers framed the slide as a belief shock quite than a confirmed good contract failure. They famous that buying and selling exercise on Arbitrum dominated the transfer, with no direct proof of a protocol exploit on the time of writing.
Considerations over backing intensified on social media. One X consumer claimed that on-chain knowledge confirmed roughly $170m in supporting belongings in opposition to about $530m in excellent loans, implying leverage above 4 occasions. These figures couldn’t be independently verified in actual time.
Stream launched in early 2024 with a pitch of capital-efficient methods that mix DeFi and conventional market methods. Customers deposit USDC right into a vault and obtain XUSD, which targets yield via actions reminiscent of lending arbitrage, incentive farming and hedged market making. The protocol has additionally labored with exterior managers when inner capability is exceeded.
The mannequin helped Stream develop rapidly via 2025, however reliance on exterior counterparties now sits on the heart of the investigation.
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