Stream Finance, a decentralized finance (DeFi) protocol, has suspended all deposit and withdrawal activities after suffering a massive $93 million loss due to an exploit involving an external asset manager.
According to an official statement, the company is currently assessing the full scope of the incident and has appointed law firm Perkins Coie to conduct a thorough investigation. All unprocessed deposits have also been temporarily suspended.
The incident began when Stream’s native stablecoin, Staked Stream USD (xUSD), lost its peg to the US dollar. Data from blockchain security firm PeckShield shows xUSD plummeting to $0.30 before recovering slightly to $0.37 on Tuesday.
The incident has also sparked concerns among the XRP community, as Stream has ties to Midas, a platform that issues mXRP liquid revenue tokens on the XRP Ledger network.
Midas previously held exposure to xUSD through its mHYPER vault, but insisted that its operations were unaffected and all redemptions were still running as normal.
However, some investors chose to withdraw their funds early as a precautionary measure, concerned about the potential risk of clawback if legal action were taken to cover Stream's losses.
At the time of this report's publication, the official mXRP dashboard showed a total locked value of around $25.55 million, with an estimated annual yield rate of 10%.
