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Cbb0fe: The xUSD of Stream Finance may have risks and lack transparency.
Wu learned that the well-known trader Cbb0fe warned that Stream Finance's xUSD may have risks and lack transparency. He pointed out that xUSD has about 170 million USD in on-chain support, but they have borrowed about 530 million USD from lending protocols, equivalent to 4.1 times leverage, and some positions have poor liquidity. Stream Finance founder Solettyy stated that they are integrating third-party validators this week, and xUSD is a neutral fund token rather than a stablecoin, with an insurance fund for over-collateralization. Currently, most of the funds are allocated to CEX and DEXs not tracked by DeBank, and the transparency issues will be resolved soon. Stream Finance received investment from Polychain in April 2024.