DeFi’s High-Stakes Rehypothecation: $284M Turmoil Reveals Deep-Rooted Systemic Weakness
- Stream Finance's collapse exposed $284M in DeFi loans and stablecoin risks via rehypothecated collateral across platforms like Euler and Silo. - Key counterparties include Elixir ($68M), TelosC ($123.6M), and MEV Capital ($25.4M), highlighting systemic fragility in interconnected DeFi markets. - xUSD stablecoin faces liquidity crunches as rehypothecated assets amplify contagion risks across Arbitrum and Plume chains. - Recent exploits at Balancer and Moonwell erased $222M, prompting calls for regulatory
DeFi experts have identified $284 million in outstanding loans and stablecoin liabilities linked to the downfall of Stream Finance, a synthetic asset platform that reported a $93 million deficit in early November. The interconnected structure of decentralized finance has heightened vulnerabilities, as assets associated with Stream's
Stream Finance, which enables users to mint synthetic assets using on-chain collateral, has halted all deposits and withdrawals while Perkins Coie LLP leads an ongoing investigation, according to
The root of the systemic threat lies in the repeated lending of Stream's collateral across multiple protocols to enhance returns. For instance, Elixir’s deUSD stablecoin provided $68 million in
The Stream Finance debacle follows a volatile week for DeFi, which also saw a $128 million breach at
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum News Update: Anti-CZ Whale’s ETH Long Position Surpasses CZ’s Optimistic ASTER Move, Securing $100M in Profits
- Anti-CZ Whale shifts ETH position to long (32,802 ETH, $109M) after previously shorting ASTER/kPEPE tokens. - Whale's $100M gains stem from shorting ASTER ($21M profit) amid CZ's bullish ASTER purchases causing 20% price swings. - Strategy contrasts with CZ's long-term ASTER investment, highlighting crypto market fragmentation and volatility. - Whale's $109M ETH bet defies broader market decline (3.75%) while analysts praise its macroeconomic navigation skills.

Bitget’s integration of Morph Chain strengthens stablecoins as the foundation for worldwide trade
- Bitget, the world's largest UEX, integrated Morph Chain, enabling direct USDT trading of Morph assets without leaving the platform. - CEO Gracy Chen highlighted stablecoin settlements and onchain liquidity as the "backbone of global commerce" in bridging blockchain and real-world payments. - The partnership with Morph Chain establishes BGB as its native token and creates a framework for fast, borderless stablecoin-powered payments. - Bitget's upgrades include Ethereum/Solana integrations, AI-driven Oncha

Bitcoin Latest Update: TGA’s $1 Trillion Liquidity Drain Drives Bitcoin Down to Lowest Point in Six Months
- U.S. government shutdown swells Treasury General Account (TGA) to $1 trillion, draining liquidity and pushing Bitcoin down 19% from October highs. - Fed injects $30B via repo operations as banks face cash shortages, signaling active liquidity management amid structural tightening. - Analysts predict Bitcoin "final drop" correction phase, with potential rally expected post-shutdown as fiscal spending resumes and rate cuts loom. - Pessimists warn of 2018-style crisis if shutdown extends, while optimists fo

Hyperliquid News Today: JELLYJELLY's Unexpected Rise Amid Crypto Downturn Sparks Manipulation Controversy
- JELLYJELLY, a Solana-based meme coin, surged to $0.50 and $500M market cap amid broader crypto market declines, defying Bitcoin and Ethereum price drops. - Blockchain analytics firm Bubblemaps flagged manipulative tactics, citing 20% liquidity drain from inactive wallets and a 600% price spike linked to coordinated trading. - Leverage platforms like HyperLiquid and Aster offer up to 40x BTC contracts for JELLYJELLY, amplifying risks as its value relies on retail frenzy rather than fundamentals. - Regulat
