Stream Finance Hack

On November 4, 2025, Stream Finance disclosed that an external fund manager overseeing Stream funds lost approximately $93 million in assets, triggering a cascade of collateral damage estimated at $285 million across the DeFi ecosystem. The incident caused Stream's synthetic tokens (xUSD, xBTC, xETH) to lose their pegs, with xUSD plummeting from $1.3 to $0.3, affecting numerous lending platforms and treasury positions.

The $93 million loss was disclosed by an external fund manager responsible for overseeing Stream fund assets, though specific technical details of how the funds were lost remain unclear. The incident had catastrophic ripple effects due to Stream's $285 million total debt position across multiple DeFi lending platforms. The collapse of xUSD triggered a systemic crisis affecting collateral loops and lending positions: deUSD issuer Elixir had provided Stream with a $68 million USDC loan (representing 65% of deUSD's collateral), and scUSD from Treeve was trapped in complex collateral loops across Mithras, Silo, and Euler platforms backed by xUSD.

Stream's debt distribution includes TelosC ($123.6M), Elixir ($68M), MEV Capital ($25.4M), Varlamore ($19.1M), Re7 ($14.2M), and several smaller lenders. Stream immediately suspended all withdrawals and deposits, engaged law firm Perkins Coie to lead the investigation, and began withdrawing all liquid assets. The synthetic tokens xUSD, xBTC, and xETH used as collateral on Euler, Silo, Morpho, and Sonic platforms remained at risk.