XUSD Stablecoin Plummets 70% Following $93 Million Loss at Stream Finance

The Staked Stream USD (XUSD) stablecoin has dropped significantly to $0.30, according to CoinGecko data, marking one of the largest depegs seen this year. The decline follows a troubling announcement from the DeFi protocol Stream Finance, revealing that an external fund manager had incurred approximately $93 million in losses.

Stream Finance Suspends Withdrawals

In a post on X, the Stream Finance team confirmed the loss and temporarily halted all deposits and withdrawals as investigations are underway.

“Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets,” stated the company.

The company has appointed attorneys Keith Miller and Joseph Cutler from Perkins Coie LLP to lead a comprehensive investigation into the incident and has started to withdraw all remaining liquid assets as a safety measure.

“Until we are able to fully assess the scope and causes of the loss, all withdrawals and deposits will be temporarily suspended,” stated the project, adding that their decision to retain Perkins Coie reflects a commitment to transparency and corporate governance.

Blockchain security firm PeckShield first highlighted the issue earlier in the day, observing that XUSD initially fell by 23%, with losses later escalating to 58% within just one hour. At the time of writing, the asset was trading around $0.48, reflecting a 62% drop over the last 24 hours.

XUSD’s market capital is currently about $95.6 million, paired with a one-day trading volume of $1.59 million. The stablecoin’s performance over the last week and month has mirrored this sharp decline, maintaining a consistent 62% downward trend, making it one of the most severe stablecoin depegs of 2025.

Continued Vulnerability in DeFi

This incident occurs just after another exploit affecting Balancer V2, a key player in the sector, which led to losses amounting to $128 million.

You may also find interest in these articles:

The attack has also impacted several Balancer forks, with StakeWise DAO confirming that, alongside security experts from Balancer and Gnosis Chain, it managed to recover 73.5% of its affected funds, returning over $20 million in stolen assets to users.

These events underscore a persistent issue in the industry. According to a recent report by Peckshield, over 20 major exploits targeted DeFi platforms in September, resulting in a total loss exceeding $127 million. Despite being a 22% decrease from August’s total of $163 million, this brings the total losses for 2025 above $3 billion, affecting platforms like the Bunni DEX, which shut down completely following an $8.4 million attack, leaving the team incapable of affording new security audits.