The post Contagion Fears Loom as Stream Finance Discloses $93 Million Loss appeared on BitcoinEthereumNews.com. Staked Stream USD (xUSD) is trading at less than 30 cents on the dollar amid concerns about the protocol’s solvency. After a week of uncertainty, yield optimizer Stream Finance announced late last night that it has lost $93 million, a significant portion of its total value locked (TVL), and the market is bracing for further contagion from its collapse as the broader market craters. What began as a back-and-forth between CBB, an anonymous whale, and the Stream team over risk management has evolved into an alarming event for decentralized finance (DeFi) users after Stream shared that “an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.” As a result, Stream’s staked stablecoin, xUSD, has depegged by 73% to just $0.27, and users are scrambling to reassess their DeFi positions and avoid any contagion. xUSD – CoinGecko DeFi Lenders Left Holding the Bag According to a summary from the Yields and More (YAM) DeFi group, there is now a mountain of debt across multiple DeFi protocols with exposure to Stream’s xUSD, xBTC, and xETH, with an estimated $285 million owed to lenders. Notable DeFi protocols such as Telos and Elixir account for $190 million of this debt, with exposure to leading lending markets including Euler, Silo, and Morpho. YAM clarified, “There might be more; this is all we found.” While the knock-on effects for these lenders are unclear, both Euler and Morpho have seen significant drops in TVL today of between $400 million and $600 million. Following the disclosure, cynics are looking back at the Stream team’s behavior over the last few weeks, and some are questioning whether the team sought to bring in new deposits to cover the hole. A prominent trader known as “chud.eth,” took to X to share screenshots of… The post Contagion Fears Loom as Stream Finance Discloses $93 Million Loss appeared on BitcoinEthereumNews.com. Staked Stream USD (xUSD) is trading at less than 30 cents on the dollar amid concerns about the protocol’s solvency. After a week of uncertainty, yield optimizer Stream Finance announced late last night that it has lost $93 million, a significant portion of its total value locked (TVL), and the market is bracing for further contagion from its collapse as the broader market craters. What began as a back-and-forth between CBB, an anonymous whale, and the Stream team over risk management has evolved into an alarming event for decentralized finance (DeFi) users after Stream shared that “an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.” As a result, Stream’s staked stablecoin, xUSD, has depegged by 73% to just $0.27, and users are scrambling to reassess their DeFi positions and avoid any contagion. xUSD – CoinGecko DeFi Lenders Left Holding the Bag According to a summary from the Yields and More (YAM) DeFi group, there is now a mountain of debt across multiple DeFi protocols with exposure to Stream’s xUSD, xBTC, and xETH, with an estimated $285 million owed to lenders. Notable DeFi protocols such as Telos and Elixir account for $190 million of this debt, with exposure to leading lending markets including Euler, Silo, and Morpho. YAM clarified, “There might be more; this is all we found.” While the knock-on effects for these lenders are unclear, both Euler and Morpho have seen significant drops in TVL today of between $400 million and $600 million. Following the disclosure, cynics are looking back at the Stream team’s behavior over the last few weeks, and some are questioning whether the team sought to bring in new deposits to cover the hole. A prominent trader known as “chud.eth,” took to X to share screenshots of…