The collapsed yield protocol, whose November failure froze roughly $160 million in deposits and left an estimated $285 million owed across DeFi lending markets, is asking potential creditors to submit claim information through an online form
Stream Finance, the collapsed DeFi yield protocol behind the depegged xUSD token, has begun collecting information from potential creditors and claimants as a step toward what it called a “potential global resolution.”
The protocol said in a post on X that it is gathering and confirming claim details through an online form, while cautioning that submitting it “does not establish or confirm any claim, entitlement, or right to payment.” It did not give a deadline or describe how a resolution would be structured.
xUSD, the yield-bearing token that was supposed to hold a $1 value, traded at about $0.08 on Monday, roughly 92% below its peg, with almost no volume changing hands, according to CoinGecko. Stream disclosed in November that an external fund manager had lost about $93 million of its assets, a hole that DeFi researchers estimated cascaded into roughly $285 million owed across lending protocols.
The request is the broadest call yet for those affected — retail token holders and institutional lenders alike — to formally register what they are owed, and the clearest sign that Stream is moving toward distributing whatever assets remain after one of the most damaging contagions of the cycle. It stopped short of committing to any payout.
A Months-Long Wind-Down
Stream disclosed the roughly $93 million loss on Nov. 4, 2025, and suspended deposits and withdrawals. xUSD lost its peg within hours, falling about 73% on the day of the disclosure before sliding into single-digit cents, where it has stayed.
The token is a synthetic dollar that Stream issued against user deposits and then deployed into leveraged yield strategies. When a portion of the backing vanished, holders were left unable to redeem, and the platform suspended operations.
After roughly six months of near-silence, Stream telegraphed its first steps toward a wind-down in May, saying it was weighing “several different strategic alternatives” and would consolidate, liquidate and distribute assets, as The Defiant previously reported. The entity now operating the process, Stream Soft Holding Company, was incorporated in Delaware on March 20, 2026, according to a state filing cited in that coverage.
Web of Obligations
The claims process has to untangle a tangled web of obligations.
Direct holders of xUSD, along with holders of Stream’s wrapped tokens xBTC and xETH, form one class of potential creditors. A second class is the institutional lenders, known as curators, that accepted Stream’s tokens as collateral in lending markets on Euler, Morpho, Silo and Gearbox.
Research group Yields and More estimated direct debt exposure of about $285 million across those markets. It identified TelosC as the single largest exposed curator at roughly $124 million, followed by Elixir at $68 million, MEV Capital at about $25 million, and smaller positions held by Varlamore and Re7 Labs.
Elixir’s exposure spread the damage further. The $68 million it had lent to Stream represented about 65% of the reserves backing its deUSD stablecoin, which Elixir moved to sunset after the loss surfaced.
Wind-Down
The wind-down is unfolding in parallel with litigation. Stream Trading Corp., which first launched Stream in 2024, sued former operator Caleb McMeansknown onchain as “0xlaw,” on Dec. 8 in the U.S. District Court for the Northern District of California, accusing him of running the platform “as his own business” and mismanaging user funds after acquiring it in early 2025.
The complaint alleges McMeans hired a yield-farming trader, Ryan DeMattia, who lost the roughly $93 million in off-chain strategies, and that McMeans moved about $2.1 million in Stream assets to personal wallets two days before the loss was disclosed, routing the funds through privacy protocol Railgun before later returning them.
McMeans has disputed responsibility, saying publicly that none of the strategies he ran suffered drawdowns and that he intended to pursue the trader who lost the funds. Stream has also said it retained law firm Perkins Coie to investigate the loss.
Data-Gathering
The form Stream circulated is a data-gathering exercise, not a commitment to repay. Its own language makes clear that submitting information confers no entitlement, and the protocol has not disclosed how much recoverable value exists. Stream has previously referenced an internal “insurance fund” but has not stated its size.
Priority among the competing creditor classes also remains unresolved. Elixir has asserted it holds redemption rights at $1, but Stream has not confirmed any creditor’s standing ahead of a formal process. As The Defiant previously reported, distressed-claims investor Thomas Braziel characterized the May wind-down notice as resembling an assignment for the benefit of creditors — a state-law alternative to bankruptcy that distributes assets quickly but typically with less investigation of pre-collapse conduct than a Chapter 11 case.
Stream said further detail on its strategic alternatives would follow. The claim information it is now collecting will feed whatever distribution mechanism the protocol and its advisers ultimately put forward.