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CBB Article Warns of High Leverage Risk in Stream's xUSD, Team Responds with Overcollateralization and Commitment to Increased Transparency

By: theblockbeats.news|2025/10/29 14:45:58
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BlockBeats News, October 29th, Cryptocurrency Key Opinion Leader (KOL) CBB0FE issued a post warning that "Stream's xUSD has only about $170 million in on-chain asset backing, yet it has borrowed about $530 million from various lending protocols. This means its leverage is as high as 4.1 times—built on a large number of extremely illiquid positions.


This is not 'yield farming,' but outright degenerate gambling leverage speculation. Stay away from it. Do not touch anything related to the Morpho/Euler vaults."

In response, Stream's founder stated, "This week we are integrating third-party attestors. Currently, xUSD is fully collateralized and overcollateralized, with an insurance fund in place. Most of the funds are distributed across CEXs and DEXs not yet tracked by Debank. This lack of transparency will soon be addressed.


xUSD was never designed to be a stablecoin. If the Crypto Twitter (CT) community mistakenly thought it was a stablecoin, that is our responsibility for miscommunication. xUSD is actually a 'tokenized market neutral fund' that allows retail investors to access real yields that were previously only available to private hedge funds and quant institutions."

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