After a week of uncertainty, yield optimizer Stream Finance announced late last night that it has lost $93 million, a significant portion of its total value locked (TVL), and the market is bracing for further contagion from its collapse as the broader market craters.

What began as a back-and-forth between CBB, an anonymous whale, and the Stream team over risk management has evolved into an alarming event for decentralized finance (DeFi) users after Stream shared that “an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.”

As a result, Stream’s staked stablecoin, xUSD, has depegged by 73% to just $0.27, and users are scrambling to reassess their DeFi positions and avoid any contagion.

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