Chainfeeds Summary:
How amateurish can a makeshift team be?
Article source:
https://x.com/bocaibocai_/status/2000835549905739931
Article Author:
Spinach, spinach
Opinion:
On November 4, 2025, the DeFi world experienced a "Black Tuesday." Stream Finance, a yield aggregation protocol that once boasted a TVL exceeding $200 million and touted as "The SuperApp DeFi Deserves," suddenly announced that an "external fund manager" had caused a loss of approximately $93 million, and that all deposit and withdrawal functions would be suspended immediately. Upon this news, its stablecoin xUSD plummeted from $1 to $0.26, a 77% drop in 24 hours. Even more devastating was the fact that xUSD was widely used as collateral in mainstream lending protocols such as Morpho, Euler, Silo, and Gearbox—this single incident triggered a massive shockwave across the entire DeFi lending market. Within a week, the DeFi market saw a net outflow of approximately $1 billion. Some have likened this to "the Terra moment of 2025," with Aave founder Stani Kulechov even warning on social media: "The next Terra Luna may be brewing." According to DL News' detailed report on the lawsuit documents: In February 2024, Argentine crypto investor Diogenes Casares founded Stream Protocol. In April of the same year, the project completed a $1.5 million seed round, led by Polychain, valuing the company at $20 million. However, after only nine months of operation, by November 2024, the founding team decided to shut down the project due to "operational challenges." It was at this point that trader Caleb McMeans appeared. He offered to acquire Stream as a "complex yield strategy management expert." Note that this was not a cash acquisition—McMeans did not pay to buy the protocol, but instead signed an agreement of "I'll operate it, you collect the fees." The original team retained their roles as service providers for the smart contracts, website, and token. When was Balancer hacked? November 3rd. If Stream's $93 million loss was due to the Balancer hack, the loss should have occurred on November 3rd. However, DeMattia admitted to "losing it all" on November 2nd—the timeline simply doesn't match. More crucial evidence: the lawsuit documents state that McMeans deleted "all private Discord communications with DeMattia since October 10th"—precisely the day DeMattia is believed to have begun misappropriating funds. If the loss was truly an external event caused by the Balancer hack, why delete chat logs starting from October 10th? The answer is obvious: the Balancer hack was likely just a "convenient coincidence," used to divert attention, obscure the timeline, and provide a "force majeure" cover for internal misappropriation. BlockEden's analysis report also confirms this: "No evidence of a smart contract hack or exploit has been found."
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