Stream Finance collapse — what creditors were owed and recovered (2025)

Stream Finance was a yield platform that issued the xUSD token against deposits and routed capital to external fund managers running off-chain strategies. On 4 November 2025 it announced that one of those third-party managers had reported a loss of about US$93 million in platform assets over the preceding weekend, and suspended all deposits and withdrawals until further notice.

xUSD lost its peg immediately, falling more than 70 percent to about US$0.29 on the day and, by later accounts, trading in the US$0.07 to US$0.14 range without recovering. More than US$160 million of user deposits were trapped across the affected vaults. That deposit figure, rather than the US$93 million loss, is the closer measure of what was owed to depositors.

The failure spread through lending markets that had accepted xUSD or lent to Stream. Elixir's deUSD, which researchers said had lent roughly 65 percent of its backing to Stream, fell close to 98 percent to around US$0.015 and was wound down. Stables Labs' USDX broke below US$0.60 days later. Researchers traced roughly US$285 million of interconnected debt across the affected vaults, and about US$1 billion left DeFi yield strategies within a week.

Stream retained Perkins Coie to lead an investigation and said it was withdrawing remaining liquid assets. No insolvency proceeding has been opened and the operating entity's jurisdiction has not been publicly established.