Researchers in decentralized finance (DeFi) have mapped the fallout from the Stream Finance collapse, revealing over $284 million in liabilities tied to stablecoins and unpaid loans.
On Tuesday, analytics group Yields and More (YAM) released a detailed report identifying multiple lending markets and vaults impacted, including Euler, Silo, Morpho, and Gearbox. These platforms hosted positions linked to Stream’s synthetic assets, such as xUSD, xBTC, and xETH.
The data highlights the scale of the crisis. Lending cycles involving assets like deUSD from Elixir and scUSD from Treeve show that total creditor exposure across various markets reaches at least $284.9 million, excluding indirect risks through secondary vaults and other lending strategies.
Affected DeFi funds and curators include TelosC, Elixir, MEV Capital, Varlamore, and Re7 Labs. The report indicates that direct exposure for TelosC is roughly $123 million, while Elixir extended $68 million in credit to Stream, representing about 65% of its stablecoin collateral.
Elixir stated it holds contractual rights to redeem deUSD at $1, but Stream Finance announced that repayments will be delayed until legal counsel clarifies creditor claims. Analysts warn that many more vaults and stablecoins are likely affected, and the presented data may not capture the full scope.
$93 Million Loss Revealed
The risk map follows Stream Finance’s announcement that deposits and withdrawals were suspended due to a $93 million loss, attributed to actions by an external asset manager. The company has engaged law firm Perkins Coie to investigate and recover funds, but no timeline for resuming normal operations has been provided.
Prior to the official disclosure, traders noticed unusual delays and discrepancies between the protocol’s reported total value locked (TVL) and figures from DefiLlama. Following the announcement, the Staked Stream USD (xUSD) stablecoin quickly depegged from the dollar, dropping to around $0.50, and later trading near $0.25, causing panic among users.
The collapse underscores concerns about transparency and multi-layered risks in high-yield DeFi infrastructure, highlighting the challenges in determining ultimate loss bearers in complex credit and derivative networks.
