Stream Finance has halted deposits and withdrawals after an external fund manager discovered a $93 million loss in assets. The project has hired lawyers to investigate the incident and is actively withdrawing all liquid assets. Meanwhile, their stablecoin, XUSD, has dropped to $0.51 following the suspension of withdrawals.

The platform has temporarily suspended withdrawals and will not process any pending deposits. Stream Finance’s stablecoin, XUSD, has depegged below a dollar after users sensed trouble and questioned the sudden pause in deposits and withdrawals. The price of XUSD has dropped to $0.51, according to CoinGecko data.

Stream Finance responded to discrepancies in their total value locked (TVL) reported on DefiLlama, stating that recursive looping is TVL according to their definitions. The platform emphasizes the importance of understanding DeFi protocols and the risks involved in complex strategies. CoinDCX’s Minal Thukral highlights the significance of comprehending yield generation in DeFi.

Read more at Cointelegraph: Stream Finance Launches Probe After Reporting $93M Loss