CBB Article Warns of High Leverage Risk in Stream's xUSD, Team Responds with Overcollateralization and Commitment to Increased Transparency

On October 29th, the cryptocurrency Key Opinion Leader (KOL) CBB0FE posted a warning stating that "Stream's xUSD has only approximately $170 million in on-chain asset backing, but it has borrowed around $530 million from various lending protocols. This indicates that its leverage is as high as 4.1 times, which is built on a large number of extremely illiquid positions. This is not 'yield farming' but rather blatant degenerate gambling leverage speculation. Stay away from it. Do not get involved with anything related to the Morpho/Euler vaults." In response, the founder of Stream said, "This week, we are integrating third-party attestors. Currently, xUSD is fully collateralized and overcollateralized, and there is an insurance fund in place. Most of the funds are distributed across CEXs and DEXs that are not yet tracked by Debank. This lack of transparency will be addressed soon. xUSD was never intended to be a stablecoin. If the Crypto Twitter (CT) community mistakenly regarded it as a stablecoin, that is our responsibility for miscommunication. xUSD is actually a 'tokenized market neutral fund' that enables retail investors to access real yields that were previously only available to private hedge funds and quantitative institutions."