Alright folks, gather around the virtual campfire. Decentralized finance platform Stream Finance has paused deposits and withdrawals like it just found out Ryan Gosling is going on a cone diet. How tragic, right? An external fund manager discovered a chilling, and by that, I mean climate changer, $93 million loss in its assets. 🤯
Stream Finance took to X (yeah, just like that tardy weekend bird that never delivers) on Monday to announce they’ve called in the big guns – lawyers from Perkins Coie – to sleuth out what happened. “We’re actively withdrawing all liquid assets and expect this process to be completed in the very near term,” they said. Oh, you know, in that oh-so-assured tone. “We will provide periodic updates as additional information becomes available.” 📢 Cue dramatic pause.
While Stream Finance investigates what might have been a lifestyle choice by their assets, withdrawals have been put on hold like a big movie premiere’s OST was never actually written. And yep, they’ve also decided no more deposits during the pause. 🚫💳
Stream Finance is kind of this thing called a “recursive looping” yield-focusing platform that also dishes out a collateralized stablecoin named Staked Stream USD (XUSD), which is like a stablecoin wearing a roller coaster tracks outfit. If things were going great before the emergency newsletter, well, they were before the XUSD started doing the dreaded depeg dance, dropping like a lead balloon below a dollar. Peaceful coincidence, one might say, as users picked up on trouble on Sunday and whispered sweet (questioning) nothings about the sudden absence of communication. 😱
Labs founder Omer Goldberg, quicker than a gold star kid receiving praise, posted on X about 10 hours before Stream’s official announcement that XUSD “began to depeg materially below its target range” after an $over a hundred million exploit at the automated market maker Balancer. Talk about an upgrade! 🎢
As of now, XUSD has taken a nosedive to as low as $0.51, according to some sage data from CoinGecko. (Couldn’t resist the wisdom sprinkle there.)
Friday brought more drama as Stream Finance took to X again, this time answering community questions about a TVL Titanic situation. It turns out there’s a discrepancy between TVL figures on their website and those listed on the slick DefiLlama service. “DefiLlama has decided that recursive looping is not TVL per their own definitions. We beg to differ but… transparency, you know? So now there’s a distinction between user deposits (~$160M) and total assets deployed across strategies (roughly $520M),” they claimed. Disclaimer: My career is not in finance, but I’m considering investing in transparency. 💸😂
CoinDCX’s head of DeFi Ecosystem Growth, Minal Thurkal, chimes in: “This underscores the critical importance of understanding exactly how protocols generate yield and the significant risks involved in complex DeFi strategies, especially those that disagree with standard metrics like DefiLlama’s TVL.” So, folks, read the fine print, unlike my friend who doesn’t read e-book contracts – it’s a story of woe. 📚
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2025-11-04 09:48