Core Insights - Stream Finance suspended all withdrawals and deposits on November 3 after an external fund manager reported a loss of approximately $93 million in company assets [1][2] - The company is in the process of withdrawing all liquid assets but has not provided a timeline for resuming operations or identifying the responsible fund manager [2] Growth and Yield Concerns - Stream's xUSD vault experienced rapid growth from $40 million to nearly $400 million, maintaining a flat 15% yield, which raises suspicions about the sustainability of returns [3] - Onchain yields typically decrease with more depositors, suggesting that returns may have been artificially set or averaged from offchain strategies [3] Transparency and Risk - Stream Finance lacks a comprehensive Proof of Reserve or transparency dashboard, relying on a Debank bundle for onchain positions [4] - Following the announcement, xUSD depegged by 25% from its target price before partially recovering [4] Contagion Risks in DeFi - Approximately $284.96 million in outstanding loans are secured by Stream's xUSD, xBTC, and xETH collateral across various DeFi lending platforms [5] - Users deposit Bitcoin, Ethereum, and dollars to mint derivative tokens used as collateral on other platforms [5] Specific Exposure Cases - Elixir Network's deUSD stablecoin has $68 million in USDC lent to Stream against xUSD collateral, representing 65% of deUSD's total backing [6] - Elixir claims full redemption rights but cannot process payouts until creditor priority is determined, putting it at risk if Stream cannot recover funds [6] Major Exposures - The largest exposed curator is TelosC with $123.64 million in loans secured by Stream assets, followed by Elixir at $68 million and MEV Capital at $25.42 million [7] - MEV Capital's xUSD market on Arbitrum has fallen below liquidation thresholds, with borrow rates reaching 88% at 100% utilization [7]

Crypto Liquidation Catastrophe: Post-Crash Analysis - Who Profited Amid the Chaos?On October 11, a major crypto liquidation event caused massive losses, triggered by geopolitical risks and a stablecoin depeg. While many traders suffered, trading platforms and DEXs earned record fees. Key issues included high leverage, low liquidity, and flawed liquidation processes, highlighting the need for stronger risk management. Read More https://t.co/rDM9m5k8ao ...