- Stream Finance stopped deposits and withdrawals after losing $93 million of fund assets.
- The platform’s xUSD token lost over 75% of its value, trading at $0.30 instead of near $1.27.
- The loss is attributed to an external fund manager handling Stream’s funds.
- Total value locked on Stream dropped from over $200 million to $98 million amid unwinding of leveraged positions.
- Users raised concerns about complex yield vaults and lending loops propping returns prior to the loss.
Stream Finance halted deposits and withdrawals from its platform following the disclosure of a $93 million loss in fund assets managed externally. The announcement was made on November 4, 2025, as the company addressed the situation publicly in a tweet.
The platform’s xUSD vault token sharply depegged, falling more than 75% to trade around $0.30 instead of the expected price near $1.27, according to CoinGecko. Stream Finance blamed the loss on an “external fund manager overseeing Stream funds,” and has engaged Perkins Coie LLP attorneys to conduct a full review.
Data from DeFiLlama shows total value locked (TVL) on the platform dropped from a peak exceeding $200 million to about $98 million by early November. The platform lost $50 million from its TVL in a single day, reflecting rapid withdrawals and asset unwinding.
Earlier concerns had been raised about a network of yield vaults, including the xUSD token, that sustained high returns by looping lending and borrowing activities. These assets were leveraged across decentralized platforms such as Morpho and Ruler, often involving complex interdependencies with other stablecoins like YieldFi’s yUSD and Elixir’s deUSD.
The Stream Finance website’s transparency page currently states “Coming soon!” with links to address bundles on portfolio tracker Debank instead of detailed reserves data. Following criticism, the platform separated TVL into “user deposits” and “assets under management,” showing leveraged positions distinctly, though these figures differ from DeFiLlama’s metrics.
As TVL declined, borrowing rates spiked, with some estimating that the platform was paying over $500,000 daily in interest. Analysts on social media have posted detailed breakdowns of vaults and stablecoins connected directly or indirectly to Stream Finance.
Further updates will be reported as the situation develops. For more details, see the official Stream Finance announcement.
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