Stablecoin Crisis Rocks DeFi as Stream Finance Collapses

The cryptocurrency world has been rocked by a major liquidity crisis in decentralized finance (DeFi). Stream Finance’s xUSD stablecoin, a key part of the platform, collapsed after a $93 million loss. This triggered massive outflows of over $1 billion from various DeFi protocols like Coinshift and Elixir, marking the largest such outflow since the 2022 UST collapse. The instability has exposed significant vulnerabilities in the DeFi sector, prompting calls for increased transparency and stronger regulatory oversight.