Stream Finance Temporarily Halts Operations Following $93 Million Asset Loss Translation: Stream Finance Temporarily Halts Operations Following $93 Million Asset Loss

The DeFi protocol Stream Finance has temporarily halted withdrawals and deposit acceptance after an external fund manager reported a loss of assets amounting to $93 million.

In a statement, the team announced that it has engaged specialists from the law firm Perkins Coie LLP to investigate the incident. The platform will not resume operations until the reasons for the losses are understood and the extent of the incident is accurately assessed.

“We are actively withdrawing all liquid assets and expect this process to be completed shortly,” the developers added.

Peckshield flagged the loss of the peg of the Staked Stream USD (xUSD) token.

For the past month, the coin maintained a steady trading range around $1.26, reaching a historic peak of $1.29 on October 10 (CoinGecko).

On November 4, its price plummeted to an all-time low of $0.30. Afterward, the xUSD price rebounded to approximately $0.37, with a market capitalization of $117.8 million.

The total value locked in Stream Finance, which was nearly $204 million at the end of October, has decreased to about $98 million (DeFi Llama).

The protocol offers users the opportunity for yield farming through access to market-making services and delta-neutral strategies. Operations are focused on trading via DEX and DeFi solutions.

It is worth noting that on November 3, the decentralized protocol Balancer lost assets worth $128 million due to a hacks.