CBB issued a statement reminding that xUSD under Stream has high leverage risks, and the team responded that there is over-collateralization and they will increase transparency.

On October 29, crypto KOL CBB0FE posted a reminder stating, “Stream's xUSD has only about $170 million in on-chain asset support, yet it has borrowed approximately $530 million from various lending protocols. This means its leverage is as high as 4.1 times—built on a large number of very illiquid positions. This is not 'yield farming,' but outright degenerate gambling. Stay away from it. Do not touch the Morpho / Euler vaults related to this.” In response, Stream's founder stated, “We are integrating third-party validators this week. Currently, xUSD is fully collateralized and over-collateralized, with an insurance fund in place. Most of the funds are distributed on CEX and DEXs that Debank has not yet tracked. This lack of transparency will soon be resolved. xUSD was never designed to be a stablecoin; if the crypto Twitter (CT) community mistakenly believes it is a stablecoin, that is our responsibility for miscommunication. xUSD is actually a 'tokenized market neutral fund' that allows ordinary investors to access real yields that were previously only available to private hedge funds and quantitative institutions.”