Stream Finance, a decentralized finance (DeFi) protocol, has suspended all deposits and withdrawals after reportedly losing $93 million in an exploit involving one of its external asset managers. The company says it is assessing the full scope of the incident and has hired legal experts from Perkins Coie to investigate.
However, pending deposits will not be processed until further notice.
The issue began when Stream's native stablecoin, Staked Stream USD (xUSD), lost its peg to the U.S. dollar. According to PeckShield, xUSD fell as low as $0.30 on Tuesday before partially recovering to the $0.37 range.
What's with XRP?
This event quickly drew attention within the XRP community due to Stream’s connection with Midas, a platform that issues the mXRP liquid yield token on the XRP Ledger. Midas had previously held positions in xUSD through its mHYPER vault, which operates under MiCA-regulated structures in Germany.
While Midas claims to be operational and unaffected, traders have expressed concerns about indirect exposure through yield strategies tied to Stream’s assets.
Although the platform reiterated that withdrawals are functioning normally, several XRP community members described an atmosphere of "better safe than sorry" as users tested exit queues and liquidity buffers.
Some advised users to withdraw from mHYPER as a precaution, citing potential clawback risks if legal action redistributes losses. Notable XRPL contributor Vet_X0 clarified that Midas’s exposure was limited to xUSD positions held days earlier and that normal redemption processing continues.
As of press time, the mXRP official dashboard shows a total value locked of about $25.55 million, with an advertised 10% annual yield.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team