- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
CBB Article Warns of High Leverage Risk in Stream's xUSD, Team Responds with Overcollateralization and Commitment to Increased Transparency
BlockBeats News, October 29th, Cryptocurrency Key Opinion Leader (KOL) CBB0FE issued a post warning that "Stream's xUSD has only about $170 million in on-chain asset backing, yet it has borrowed about $530 million from various lending protocols. This means its leverage is as high as 4.1 times—built on a large number of extremely illiquid positions.
This is not 'yield farming,' but outright degenerate gambling leverage speculation. Stay away from it. Do not touch anything related to the Morpho/Euler vaults."
In response, Stream's founder stated, "This week we are integrating third-party attestors. Currently, xUSD is fully collateralized and overcollateralized, with an insurance fund in place. Most of the funds are distributed across CEXs and DEXs not yet tracked by Debank. This lack of transparency will soon be addressed.
xUSD was never designed to be a stablecoin. If the Crypto Twitter (CT) community mistakenly thought it was a stablecoin, that is our responsibility for miscommunication. xUSD is actually a 'tokenized market neutral fund' that allows retail investors to access real yields that were previously only available to private hedge funds and quant institutions."
You may also like
SBF's little brother turned 225 million into 5.5 billion in one year
In a World of Disruption, How Can Humanities Workers Better Use AI?
Anthropic Open Letter: The Hypocritical Sam Altman, PUA Master
On the same day that Kraken's Fedmaster Account was approved, the banking lobbying group immediately launched a counterattack.
Bitwise: This weekend's attack accelerated the on-chain migration of the financial world
Market Downturn: Which Assets Are Worth Watching?
The real opportunity of stablecoins is not to kill Visa
Trump's AI Farce: Insult if You Don't Pay
US & Canada Crypto Tax Season 2026: Official Tax Reporting Support from WEEX × KoinX
Prepare for US & Canada crypto tax season 2026. Learn how to export your WEEX transaction history and access official reporting support through our partnership with KoinX.
Conversation between Tom Lee and "The Big Short" Author: AI has detected bubble signal, crypto correction due to gold liquidity being "siphoned off"
The true reason for Claude's ban, Kraken accessing the Federal Reserve payment system, What is the English community paying attention to?
「Buying the Dip」 of 400,000 BTC: Is $74,000 a Rebound or a Reversal?
OpenClaw, Another Batch of Middle Class Jobless
Morning News | Backpack will launch on-chain IPO subscription service; Predict.fun strategically acquires on-chain prediction platform Probable; SoFi partners with Mastercard for strategic cooperation
Inventorying the Washington power in the crypto space, who is speaking out for U.S. crypto legislation?
650 million dollars, 1.5 billion dollars, 2 billion dollars, the crypto VC landscape has changed!
Why prediction markets are the largest untapped collateral pool in DeFi
500% XAUT Staking, Zero-Fee Gold Futures and $100K Rewards: Why Traders Are Turning to WEEX for Tokenized Gold
Explore WEEX's $100,000+ gold campaign featuring 500% XAUT staking, zero-fee gold contracts, and $30,000 PAXG rewards. Trade tokenized gold today.
App