Stream Finance Collapse Sparks $284M DeFi Contagion Risk

[etfs]

After a $93 million loss, Stream Finance’s meltdown is rippling through DeFi markets.
Analysts report $284 million in loans and stablecoins linked to its synthetic assets — xUSD, xBTC, and xETH — creating cross-protocol contagion.
Projects like Elixir and TelosC were hit hardest, forcing Elixir to pull its deUSD stablecoin, which lost its peg after mass redemptions.
The event echoes DeFi’s growing exposure to interconnected risk loops.

[Nahid Hossen]

One platform’s fall shakes the whole sector — DeFi’s interdependence is brutal. ️

[EmTeam]

If risk models don’t improve soon, contagion will become the norm.