CBB0FE Flags 4.1x Leverage in Stream's xUSD With $170M Backing $530M Borrow

CBB0FE warned on October 29 that Stream's xUSD has approximately $170 million in on-chain assets backing around $530 million in borrowing across lending protocols, resulting in a 4.1x leverage ratio, BlockBeats reports. The position relies heavily on illiquid holdings, and CBB0FE advised avoiding xUSD-related Morpho and Euler vaults. Stream's founder said xUSD is fully and over-collateralized with an insurance fund in place, and the team is integrating third-party attesters this week to improve transparency. Most funds are held on centralized exchanges and DEXs not tracked by Debank, and the team acknowledged miscommunication, clarifying xUSD was never intended as a stablecoin but as a tokenized market-neutral fund providing real yields to retail investors.