Stream Finance is facing a serious crisis after an external management fund reported a loss of $93 million, causing stablecoin XUSD to lose its peg of more than 50%.
Stream Finance loses $93 million, stablecoin XUSD loses peg of more than 57%
Stream Finance announces $93 million loss, stablecoin XUSD loses peg
- On November 3, the yield management-focused DeFi protocol Stream Finance posted a notice on X, stating that an external asset manager in charge of the Stream Fund portfolio reported a loss of approximately $93 million.
Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.
— Stream Finance (@StreamDefi) November 4, 2025
In response, Stream is in the process of engaging Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP, to lead a comprehensive…
- Immediately after discovering the damage, the Stream team said it activated emergency response procedures, including:
- Temporarily suspend all deposits and withdrawals on the platform to prevent further risk spread or loss of assets.
- Withdraw all liquidation assets from external partners to ensure temporary safety of remaining funds.
- Hired two attorneys, Keith Miller and Joseph Cutler , of the law firm Perkins Coie LLP, to conduct a comprehensive independent investigation.
- Stream also affirmed that it will periodically update the community and investors when more information is available, and expressed its desire to maintain user confidence during the crisis.
- This incident is XEM a heavy blow to the reputation of Stream Finance, a project that once positioned itself as a safe DeFi protocol, helping users earn stable profits from crypto assets without complicated operations or risk portfolio management.
- Before the announcement, Stream Finance's TVL reached 195 million USD. However, at the time of writing, this number has plummeted to about 105 million USD, showing that Capital is being withdrawn massively in the context of users' concerns about the fund's safety.
Stream Finance TVL Statistics. Source: defillama (November 4, 2025)
- Another product of Stream Finance, Stream Finance's Staking stablecoin XUSD, also recorded a serious loss of peg, losing up to 58% of its value.
Price movement of stablecoin XUSD in the last 24 hours, screenshot on CoinGecko at 12:15 PM on 04/11/2025
Community backlash, suspecting the project is not transparent
- Many believe that the loss of $93 million, equivalent to nearly half of total assets, is a sign that the Stream Fund may have used very high leverage or deployed off-chain investment strategies, such as margin trading or futures on CEX exchanges, which goes against the "safe, transparent" message that the project once promoted.
- In addition, Stream Finance has committed to a fairly high yield, ranging from 12-20%APY for XUSD depositors, significantly higher than the average of other DeFi protocols.
- However, according to some internal sources, most of the actual profits from investments are not Chia equally to the depositors, but the management team retains a large portion for the fund or within the project. This makes the community question the conflict of interest and lack of transparency in the way profits are distributed, especially when the project does not clearly publish its operating report or Proof of Reserves .
- Before the incident, the @CBB account warned that Stream Finance was paying up to $540,000 in interest per day, a figure “unreasonable” compared to actual cash flow, and “very likely there is a hole in the treasury.
xUSD is currently paying out $540K in daily interest
— CBB (@Cbb0fe) November 3, 2025
There's probably a massive hole in the Treasury
Their complete silence makes me think they've hired a legal counsel
- @AzFlin believes that Stream has suffered a severe loss of liquidation . Some even predict that if they are repaid, they will lose 10–30% of their assets, similar to what has happened in other DeFi protocol collapses.
An update on @StreamDefi :
— AzFlin 🌎 (@AzFlin) November 3, 2025
Very unfortunate situation as I have funds in xUSD & xBTC.
TLDR everyone believes Stream has incurred losses, and that their assets will be redeemed at a haircut. Hearing 10-30% haircut as predicted. A lot of their portfolio is heavily looped so it… pic.twitter.com/8bX89ExQya
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