Analysts Map Massive Web of Loans Across DeFi Lending Markets

A group of decentralized finance (DeFi) researchers has traced more than $284 million in loans and stablecoin exposure linked to Stream Finance, following the protocol’s abrupt suspension of operations earlier this week.

In a detailed post on Tuesday, DeFi analytics collective Yields and More (YAM) identified dozens of lending platforms — including Euler, Silo, Morpho, and Gearbox — that hold intertwined positions tied to Stream’s synthetic assets such as xUSD, xBTC, and xETH.

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The findings revealed a complex web of cross-collateralized debt and recursive lending loops involving assets like Elixir’s deUSD and Treeve’s scUSD, suggesting that at least $284.9 million in debt is currently owed across the ecosystem. The number could rise further when indirect exposures via secondary vaults and automated strategies are included.

YAM’s report also identified several major DeFi funds and market curators as being caught in the fallout, including TelosC, Elixir, MEV Capital, Varlamore, and Re7 Labs. According to the data, TelosC alone holds roughly $123 million in exposure, while Elixir has around $68 million — equal to about 65% of its stablecoin reserves.

Source: Elixir

More Vaults and Stablecoins Likely Affected, Analysts Warn

While Elixir has claimed that its deUSD stablecoin carries contractual redemption rights at $1 per token, Stream Finance has reportedly informed counterparties that repayment is on hold pending a legal review to determine “who is owed what.”

YAM cautioned that the full scope of affected protocols may still be unknown. “This is not an extensive list — there likely are more stables and vaults impacted,” the group wrote. “The information presented here is not guaranteed to be fully accurate.”

The situation highlights longstanding transparency concerns in DeFi’s high-yield infrastructure, where assets are frequently rehypothecated or pooled across multiple lending protocols. Such interdependence often obscures which lenders ultimately bear the losses when one player collapses.

Market participants fear that this could trigger a cascading liquidity crunch if other projects dependent on Stream’s assets face redemption pressure.

Stream Finance Admits $93M Loss, Hires Law Firm for Recovery

The exposure analysis comes just days after Stream Finance announced it had paused all deposits and withdrawals, citing a $93 million loss linked to an external fund manager. The project said it had retained Perkins Coie, a prominent law firm specializing in blockchain cases, to conduct a forensic investigation and attempt asset recovery.

However, Stream Finance has not yet provided a timeline for restoring user access or resuming operations.

Before the halt, on-chain traders had flagged discrepancies between Stream’s reported total value locked (TVL) and data listed by DefiLlama, hinting at liquidity stress within the protocol.

Following the official suspension, Staked Stream USD (xUSD) — Stream’s flagship synthetic stablecoin — collapsed to $0.50, signaling a market-wide loss of confidence. As of publication, CoinGecko data shows xUSD trading near $0.33, underscoring continued panic among holders.