Decentralized finance (DeFi) researchers found over $284 million in stablecoin exposure and loans tied to Stream Finance after its collapse. Various lending markets and vaults, including Euler, Silo, Morpho, and Gearbox, held positions linked to Stream’s synthetic assets, totaling $284.9 million in debt owed to lenders. TelosC had $123 million exposure, while Elixir lent $68 million.

Elixir claimed redemption rights at $1 per deUSD, but Stream Finance delayed repayment pending legal clarification. The incident underscores transparency concerns in DeFi’s high-yield structures. The protocols featured layered exposures through lending markets and derivative stablecoins, complicating loss attribution. YAM noted more vaults and stables were likely affected.

Stream Finance paused deposits and withdrawals due to a $93 million loss from an external fund manager. The project hired Perkins Coie to recover assets but did not specify a timeline for resuming operations. Traders noticed discrepancies before the announcement, and Staked Stream USD (xUSD) depegged to $0.50, causing concern among users.

Read more at Cointelegraph: $284M In DeFi Loans And Stablecoin Risk Traced To Stream Finance