The collapse of Stream Finance, a prominent DeFi platform, has triggered significant ripples within the stablecoin ecosystem. Several stablecoins and lending protocols are facing exposure to losses stemming from Stream’s financial issues. The crisis highlights a pressing concern: interconnectedness in DeFi and the lack of transparency around risk management. Analysis reveals that stablecoins like Elixir’s deUSD and Treeve’s scUSD have direct or indirect exposure to Stream, leading to concerns about potential losses for borrowers and lenders alike. Elixir’s deUSD, for example, lent $68 million in USDC to Stream Finance, representing a significant portion of its reserves. This creates a direct link between Elixir’s stability and Stream’s solvency, making it a critical focal point in the current situation. Further complicating matters, various lending platforms, including Euler, Silo, Morpho, and Gearbox, are exposed to xUSD, xBTC, or xETH collateral linked to Stream assets. This exposure underscores the interconnected nature of DeFi, where even seemingly isolated events can trigger cascading impacts across the ecosystem. 100% of Stream’s funds have been lost in this event, with a team hired by external fund manager to resolve the crisis.