Stream Finance Begins Creditor Data Collection, Advances Liquidation Process
According to The Defiant, the defunct DeFi yield protocol Stream Finance has started collecting potential creditor information through an online form, preparing for a “potential global solution”. Stream first hinted at liquidation intentions in May, and this information collection marks a concrete step forward. While claims have been gathered, no specific repayment plan has been promised, and creditor priority remains undetermined.
Complex Debt Structure: Two Creditor Classes with ~$285M Total Exposure
Stream's debt structure involves two classes. Class 1 creditors are direct holders of xUSD, xBTC, and xETH. Class 2 creditors are institutional lenders who accepted Stream tokens as collateral, including curators on Euler, Morpho, Silo, and Gearbox. Research firm Yields and More estimates direct debt exposure at approximately $285 million. The largest curator, TelosC, has exposure of about $124 million, while Elixir has $68 million (representing 65% of its deUSD stablecoin reserves).
Legal Disputes and Depeg Status: xUSD Down 92% from Peg
Stream is simultaneously in legal disputes with former operator Caleb McMeans, adding further uncertainty to the liquidation process. In November last year, Stream disclosed that an external fund manager lost approximately $93 million in assets, causing xUSD to depeg and freezing about $160 million in deposits. Currently, xUSD trades at around $0.08, down approximately 92% from its $1 peg. The ultimate recovery rate for creditors remains contingent on the yet-to-be-determined resolution plan.