The post Stream’s xUSD Faces Scrutiny Over High Leverage and Transparency appeared on BitcoinEthereumNews.com. Key Points: Concerns over Stream’s xUSD leverage and asset backing transparency. xUSD’s 4.1x leverage fuels market concern. Stream’s founder addresses issues, promises transparency. Stream’s xUSD token faces scrutiny after KOL CBB0FE warns of risky leverage levels and asset backing discrepancies, prompting a response from the founder about transparency and collateralization improvements. The event highlights potential systemic risks within DeFi, emphasizing the importance of transparency and proper asset management amid volatile market conditions and heightened community skepticism. xUSD’s 4.1x Leverage Spurs Market Scrutiny CBB0FE’s warning spotlighted Stream’s xUSD, which has approximately $170 million in on-chain assets backing, while borrowing around $530 million. This discrepancy led to criticism about its illiquidity and leverage position, emphasizing risks involved with Morpho/Euler vaults. As CBB0FE, a Key Opinion Leader, stated, “Stream’s xUSD has only about $170 million in on-chain asset backing, yet it has borrowed about $530 million from various lending protocols. This means its leverage is as high as 4.1 times—built on a large number of extremely illiquid positions. This is not ‘yield farming,’ but outright degenerate gambling leverage speculation. Stay away from it. Do not touch anything related to the Morpho/Euler vaults.” Efforts to improve transparency by Stream’s founder include integrating third-party attestors and clarifying that xUSD is not a stablecoin. The reclassification as a tokenized market neutral fund aims to alleviate concerns. However, further developments are expected as the founder pledged to enhance transparency and address miscommunication. Market reactions to the controversy have been mixed, with some seeing it as a call for caution. CBB0FE’s public warning was widely shared, while Stream’s response focused on correcting miscommunication and stressing their insurance fund. Regulation and Analysis: xUSD’s Future Challenges Did you know? Excessive leverage reminiscent of previous collapses, such as the October 2025 (record USD 19 billion in liquidated positions) scenario, underscores the… The post Stream’s xUSD Faces Scrutiny Over High Leverage and Transparency appeared on BitcoinEthereumNews.com. Key Points: Concerns over Stream’s xUSD leverage and asset backing transparency. xUSD’s 4.1x leverage fuels market concern. Stream’s founder addresses issues, promises transparency. Stream’s xUSD token faces scrutiny after KOL CBB0FE warns of risky leverage levels and asset backing discrepancies, prompting a response from the founder about transparency and collateralization improvements. The event highlights potential systemic risks within DeFi, emphasizing the importance of transparency and proper asset management amid volatile market conditions and heightened community skepticism. xUSD’s 4.1x Leverage Spurs Market Scrutiny CBB0FE’s warning spotlighted Stream’s xUSD, which has approximately $170 million in on-chain assets backing, while borrowing around $530 million. This discrepancy led to criticism about its illiquidity and leverage position, emphasizing risks involved with Morpho/Euler vaults. As CBB0FE, a Key Opinion Leader, stated, “Stream’s xUSD has only about $170 million in on-chain asset backing, yet it has borrowed about $530 million from various lending protocols. This means its leverage is as high as 4.1 times—built on a large number of extremely illiquid positions. This is not ‘yield farming,’ but outright degenerate gambling leverage speculation. Stay away from it. Do not touch anything related to the Morpho/Euler vaults.” Efforts to improve transparency by Stream’s founder include integrating third-party attestors and clarifying that xUSD is not a stablecoin. The reclassification as a tokenized market neutral fund aims to alleviate concerns. However, further developments are expected as the founder pledged to enhance transparency and address miscommunication. Market reactions to the controversy have been mixed, with some seeing it as a call for caution. CBB0FE’s public warning was widely shared, while Stream’s response focused on correcting miscommunication and stressing their insurance fund. Regulation and Analysis: xUSD’s Future Challenges Did you know? Excessive leverage reminiscent of previous collapses, such as the October 2025 (record USD 19 billion in liquidated positions) scenario, underscores the…