Stream Finance froze withdrawals after a $93 million loss sent its stablecoin crashing to $0.51, exposing the fragility of complex DeFi yield strategies.
(Photo of Behnam Norouzi on Unsplash)
Posted November 4, 2025 at 8:58 am EST.
Stream Finance paused deposits and withdrawals Monday after an external fund manager reported a $93 million loss in assets. The DeFi platform hired lawyers from Perkins Coie to investigate the incident reported Sunday.
The platform’s stablecoin Staked Stream USD dropped to $0.51, depegging from its dollar target. Users questioned the suspension before Stream Finance posted on X, as XUSD had already begun depegging below $1 on Sunday. Labs founder Omer Goldberg noted the depeg occurred after a $100 million exploit on automated market maker Balancer.
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Stream Finance operates a recursive looping yield-focused platform. On Friday, the team addressed community questions about discrepancies between its website’s total value locked and DefiLlama’s listing.
The platform distinguished between user deposits of approximately $160 million and total assets deployed across strategies of roughly $520 million. Minal Thurkal of CoinDCX stated the incident underscores risks in complex DeFi strategies, particularly those disagreeing with standard metrics.
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