Decentralized finance (DEFI) researchers have mapped more than $284 million in StableCoin exposure and outstanding loans linked to stream finance, following the collapse of the protocol.
On Tuesday, a detailed post of defi group harvests and more (yum) Flagged Dozens of lending markets and vaults, including platforms Euler, Silo, Morpho and Gearbox, hold positions connected to Stream’s synthetic assets, which include XUSD, XBTC and XETH.
The data highlighted the extent of the collapse. Exposure loops involving Elixir’s Deusd, TREEVE’s SCUSD and other assets suggested that at least $284.9 million in overall debt is owed to lenders in various markets. Excludes indirect exposure through secondary vaults and other lending techniques.
According to the Post, Defi’s funds and curators include Telosc, Elixir, MeV Capital, Varlamore and RE7 Labs. The post showed that Telosc has nearly $123 million in material exposure, while Elixir has lent $68 million to stream, which is approximately 65% of its stablecoin backing.
Yam said many vaults and stables were “probably affected”
Elixir claimed to have contractual redemption rights at $1 per DeusD. However, Finance Finance has reportedly said that payment must wait until lawyers determine “who owes the debt.”
The findings reinforce existing concerns about transparency in the defi ecosystem’s high-yield infrastructures.
The protocols involved have layered exposures through lending markets and derivative stablecoins, making it difficult to determine who ultimately bears the losses.
“This is not an extensive list; there are likely more stables/vaults affected, and the information presented here is not guaranteed to be accurate,” Yam wrote.
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Stream Finance’s $93 million loss
The exposure map following Stream Finance’s announcement It has paused deposits and withdrawals after finding a $93 million loss attributed to an external fund manager.
The project said it used the services of law firm Perkins Coie to investigate and recover the assets. However, it did not give a timeline for resuming its normal operations.
Prior to the announcement, traders noticed unusual delays and discrepancies between the reported total value locked (TVL) of the project listed by Aggregator Defillama.
After the announcement, the staked stream of USD (XUSD) was quickly removed to almost $0.50, noticeable fear among users. At the time of writing, the coingecko data indicated that stock is trading at $0.33.
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