Background
The defunct DeFi yield protocol Stream Finance has officially begun the process of collecting creditor information. According to The Defiant, Stream launched an online form to register potential claims as it prepares for a 'potential global solution.' The firm first hinted at liquidation intentions in May and is now moving forward with formal procedures.
Debt Structure and Scale
Stream's debt is split into two classes: direct holders of xUSD, xBTC, and xETH; and institutional lenders that accepted Stream tokens as collateral—curators on protocols such as Euler, Morpho, Silo, and Gearbox. Research firm Yields and More estimates the total direct debt exposure at approximately $285 million. The largest curator, TelosC, accounts for about $124 million, followed by Elixir with roughly $68 million—representing 65% of Elixir's deUSD stablecoin reserves.
Claims Process and Priority Disputes
Stream has collected initial claim information but has not yet committed to a specific repayment plan, leaving the priority order among different creditor classes unresolved. Adding to the complexity, Stream is engaged in a legal dispute with former operator Caleb McMeans, further delaying any resolution.
xUSD Depeg and Market Impact
In November last year, Stream disclosed that an external fund manager had lost approximately $93 million in assets, triggering a severe depeg of its xUSD stablecoin and freezing about $160 million in deposits. As of now, xUSD trades at around $0.08, a 92% decline from its $1 peg—essentially a near-total loss of value. This event has sent shockwaves through the DeFi credit market, especially for institutions involved in curated lending models, highlighting the fragility of such structured products.