{"id":"stream-finance","title":"Stream Finance","content":"**Stream Finance** is a [decentralized finance](https://iq.wiki/wiki/defi) (DeFi) protocol that provides yield-generating products for crypto assets. The project has described itself as a \"SuperApp\" for DeFi, a \"yield bearing, MEV recapturing\" decentralized exchange (DEX), and a \"recursive looping yield-focused\" platform [\\[1\\]](#cite-id-IEzBsy6Inw) [\\[2\\]](#cite-id-d9zEHLkJp9) [\\[3\\]](#cite-id-kkxejlPwOd). It initially launched on the Sonic blockchain, a Layer 2 network, and later expanded its operations to the [Avalanche](https://iq.wiki/wiki/avalanche) blockchain [\\[2\\]](#cite-id-d9zEHLkJp9). The protocol gained significant user deposits before experiencing a severe crisis in late 2025 when its native stablecoin de-pegged, resulting in substantial losses for its users [\\[3\\]](#cite-id-kkxejlPwOd).\n\n## History\n\nStream Finance was established by a team of anonymous developers who operate under the pseudonyms 'Flow' and 'Ripple'. The project's official X (formerly Twitter) account was created in December 2022, with the protocol officially launching in February 2025 on the Sonic blockchain [\\[2\\]](#cite-id-d9zEHLkJp9).\n\nThe platform experienced rapid initial growth, accumulating 110 million. The project announced its expansion plans early, stating on April 3, 2024, that it would deploy on the [Avalanche](https://iq.wiki/wiki/avalanche) blockchain. In June 2025, the team also announced future plans to deploy on the [Berachain](https://iq.wiki/wiki/berachain) network [\\[2\\]](#cite-id-d9zEHLkJp9).\n\n## Core Technology\n\nStream Finance's architecture is designed to generate high yields for users by deploying their deposited assets into complex financial strategies. The protocol's mechanism has been described as a \"recursive looping\" system, which suggests the use of leverage to amplify returns. This is supported by the team's distinction between user deposits (approximately 520 million) prior to its stablecoin crash [\\[3\\]](#cite-id-kkxejlPwOd).\n\n### Yield Generation Strategies\n\nThe protocol offers users a series of yield-generating vaults for assets including [USDC](https://iq.wiki/wiki/usdc), ETH (as [wETH](https://iq.wiki/wiki/weth-wrapped-eth)), BTC (as [wBTC](https://iq.wiki/wiki/wrapped-bitcoin-wbtc)), and [EURC](https://iq.wiki/wiki/eurc). According to its official website, these vaults employ \"market neutral strategies\" to generate returns. These strategies are a mix of:\n\n* Lending arbitrages\n* Incentive farming\n* Dynamically hedged high-frequency trading (HFT)\n* Market making\n\nOn the [Avalanche](https://iq.wiki/wiki/avalanche) network, the protocol's vaults were specifically designed to execute basis and carry trades. This strategy involved arbitraging the difference between high funding rates on [Avalanche](https://iq.wiki/wiki/avalanche) and the lower cost of hedging the exposure, allowing users to earn yield without active management. The platform's design as a DEX also incorporates features to capture Maximal Extractable Value (MEV) to further enhance yields [\\[2\\]](#cite-id-d9zEHLkJp9). The protocol officially stated that potential risks for users included \"Execution failure, smart contract risk, custody risk\" [\\[1\\]](#cite-id-IEzBsy6Inw).\n\n### Stablecoin Mechanism\n\nStream Finance featured a native stablecoin designed to be pegged to the U.S. dollar. However, sources have identified the stablecoin by two different names. The project's social media referred to it as **STRM**, an algorithmic [stablecoin](https://iq.wiki/wiki/stablecoin) operating on a dual-token system. In this model, STRM was backed by a combination of over-collateralized crypto assets and the protocol's governance token, STREAM [\\[2\\]](#cite-id-d9zEHLkJp9).\n\nIn contrast, reporting on the de-pegging event from *Unchained Crypto* identified the stablecoin as **Staked Stream USD (XUSD)**. The stability of this asset was linked to the performance and integrity of the platform's underlying leveraged yield strategies [\\[3\\]](#cite-id-kkxejlPwOd).\n\n### Infrastructure\n\nThe protocol is secured by [EigenLayer](https://iq.wiki/wiki/eigenlayer), utilizing the EthosStake Actively Validated Service (AVS). For cross-chain asset transfers, Stream Finance uses the Noble protocol, an interoperability platform also used by Circle for its stablecoins [\\[2\\]](#cite-id-d9zEHLkJp9).\n\n## Stablecoin Crash (October–November 2025)\n\nIn late October and early November 2025, Stream Finance's native stablecoin experienced a catastrophic [de-pegging](https://iq.wiki/wiki/currency-peg) event that led to the protocol's collapse and significant user losses. There are conflicting reports regarding the exact timeline of the event.\n\n### Timeline of Events\n\nOne set of reports, citing an *Unchained Crypto* article from October 29, 2025, states that the stablecoin, STRM, lost its peg on October 28, 2025 [\\[2\\]](#cite-id-d9zEHLkJp9).\n\nA separate report from *Unchained Crypto*, published on November 4, 2025, provides a different timeline. It states that the stablecoin, identified as XUSD, began to de-peg from its 100 million exploit on the automated market maker [Balancer](https://iq.wiki/wiki/balancer), raising concerns about potential market contagion. In response to the growing crisis, the Stream Finance team officially paused all deposits and withdrawals on its platform on Monday, November 4, 2025 [\\[3\\]](#cite-id-kkxejlPwOd).\n\n### Financial Impact and Cause\n\nBoth reports concur on the scale of the financial damage. The de-pegging event resulted in an estimated loss of **0.51** [\\[2\\]](#cite-id-d9zEHLkJp9) [\\[3\\]](#cite-id-kkxejlPwOd).\n\nThe cause of the crash was attributed to the protocol's underlying mechanics and market pressure. One analysis described the trigger as \"a series of large-scale redemptions and swaps against the stablecoin's liquidity pools,\" which created a feedback loop known as a \"death spiral\" for the algorithmic asset [\\[2\\]](#cite-id-d9zEHLkJp9). The incident highlighted the risks associated with complex, leveraged DeFi strategies, particularly when a protocol's reported metrics, such as TVL, differ from those tracked by standard industry aggregators [\\[3\\]](#cite-id-kkxejlPwOd).\n\n### Protocol Response\n\nFollowing the de-peg, the Stream Finance team took several steps to address the situation:\n\n* **Suspension of Services:** All protocol operations, including deposits and withdrawals, were paused to prevent further losses and to begin an investigation [\\[2\\]](#cite-id-d9zEHLkJp9) [\\[3\\]](#cite-id-kkxejlPwOd).\n* **Legal Action:** The platform hired lawyers from the firm Perkins Coie to conduct a formal investigation into the incident and the associated losses [\\[3\\]](#cite-id-kkxejlPwOd).\n* **Compensation Plan:** The team announced a proposed compensation plan for affected users. The plan involved distributing the remaining assets in the protocol's treasury, supplemented by a portion of future protocol revenue [\\[2\\]](#cite-id-d9zEHLkJp9).\n* **Public Communication:** The team publicly acknowledged the suspension on X after users had already begun questioning the platform's status due to the visible de-pegging of the stablecoin. They also stated that a full post-mortem report would be released after their investigation was complete [\\[2\\]](#cite-id-d9zEHLkJp9) [\\[3\\]](#cite-id-kkxejlPwOd).","summary":"Stream Finance is a DeFi protocol and DEX that launched on the Sonic blockchain and expanded to Avalanche. In October 2025, its algorithmic stablecoin, STRM, de-pegged, crashing to $0.51 and causing an estimated $93 million loss for users.","images":[{"id":"QmaqjLFC48n4f27iPopPxEK9C9B5LYpJsNtpKkQbTAtTS7","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"defi"}],"tags":[{"id":"Protocols"},{"id":"Stablecoins"},{"id":"Solana"},{"id":"DEXes"},{"id":"Ethereum"}],"media":[{"id":"QmWw31x7xEBbPVvMqv1GX55v8syQHX1rnkp9R68qzxu2BN","type":"GALLERY","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[\n  {\n    \"id\": \"IEzBsy6Inw\",\n    \"url\": \"https://streamprotocol.money/\",\n    \"description\": \"Stream Finance official website\",\n    \"timestamp\": 1762275064474\n  },\n  {\n    \"id\": \"d9zEHLkJp9\",\n    \"url\": \"https://x.com/StreamDefi\",\n    \"description\": \"Stream Finance official X account\",\n    \"timestamp\": 1762275064474\n  },\n  {\n    \"id\": \"kkxejlPwOd\",\n    \"url\": \"https://unchainedcrypto.com/stream-finance-loses-93-million-as-stablecoin-crashes-to-0-51/\",\n    \"description\": \"Unchained Crypto article on Stream Finance crash\",\n    \"timestamp\": 1762275064474\n  }\n]"},{"id":"website","value":"https://streamprotocol.money/"},{"id":"twitter_profile","value":"https://x.com/StreamDefi"},{"id":"references","value":"https://unchainedcrypto.com/stream-finance-loses-93-million-as-stablecoin-crashes-to-0-51/"},{"id":"discord_profile","value":"https://discord.gg/EQADPcnqz4"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmceLsMPq5U9x2Eg8ED17ffcitdACdGpsiKvGNaCWJ8DDG\""},{"id":"commit-message","value":"\"Updated wiki content\""},{"id":"previous_cid","value":"QmceLsMPq5U9x2Eg8ED17ffcitdACdGpsiKvGNaCWJ8DDG"}],"events":[{"id":"5c824832-7dd3-44e3-96fd-18b65b872761","date":"2022-12","title":"Stream Finance Founded","type":"CREATED","description":"Stream Finance was established, with its official X (formerly Twitter) account created in December 2022.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"caf25f8a-6899-4948-9442-4f163b2c5edf","date":"2025-02","title":"Protocol Launch on Sonic Blockchain","type":"DEFAULT","description":"The protocol officially launched in February 2025 on the Sonic blockchain, a Layer 2 network, achieving $12 million in TVL within its first 10 hours.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"6f997f2b-0ccd-4e09-b3a2-d985533c00ee","date":"2024-04","title":"Expansion to Avalanche","type":"DEFAULT","description":"Stream Finance announced its deployment on the Avalanche blockchain to offer basis and carry trade yield strategies.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"9ea56fb2-9e15-40e4-812a-25787e302196","date":"2025-10","title":"Stablecoin De-Peg Event","type":"DEFAULT","description":"The protocol's stablecoin, STRM, lost its peg to the US dollar, crashing to a low of $0.51. The event resulted in an estimated user loss of $93 million.","link":"https://unchainedcrypto.com/stream-finance-loses-93-million-as-stablecoin-crashes-to-0-51/","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"1ab0a80b-de73-433a-8bdf-f70a22d49732","date":"2025-11","title":"Operations Paused","type":"DEFAULT","description":"In response to the stablecoin crisis, the Stream Finance team paused all protocol deposits and withdrawals to investigate the incident and formulate a compensation plan.","link":"https://unchainedcrypto.com/stream-finance-loses-93-million-as-stablecoin-crashes-to-0-51/","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["solana","avalanche","berachain"],"founders":["anon"],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"baa71c1f-67bd-4f91-931c-f1a1895a952b\",\"title\":\"Stream Finance\",\"description\":\"Stream Finance is a DeFi protocol and DEX that launched on the Sonic blockchain and expanded to Avalanche. 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