Suilend pauses deposits and withdrawals specifically in its Elixir Isolated Market in response to a major loss reported by Stream Finance
**DeFi Lending Protocol Suilend Takes Precautionary Measures Amid Major Loss at Stream Finance**
DeFi lending protocol **Suilend** has taken precautionary measures following a significant loss reported by **Stream Finance**, an incident that is causing ripple effects across the Sui ecosystem. Among the hardest hit is **Elixir**, a protocol that appears to have borrowed against assets tied to Stream Finance’s **xUSD**, a dollar-pegged stablecoin-like asset.
### Suilend Takes Action Against Elixir
Just hours after Stream Finance announced its substantial loss, Suilend posted an update on X (formerly Twitter) reassuring users that the team is closely monitoring the unfolding situation affecting Elixir’s **deUSD**. The update detailed that deposits and withdrawals in the Elixir Isolated Market have been paused. Additionally, Suilend has been actively communicating with Elixir and is demanding loan repayment.
The team emphasized that “all other Suilend markets are unaffected and remain safe,” aiming to calm concerns within the community.
### Details of Stream Finance’s Loss
Suilend’s post quoted Stream Finance’s announcement regarding the major loss, which was roughly estimated at **$93 million in Stream fund assets**. The loss reportedly occurred due to mismanagement by an external fund manager overseeing Stream’s funds. According to Cryptopolitan, suspicions within the Stream Finance community suggest that the fund manager may have used customer deposits for risky investments. So far, there has been no evidence indicating a hack or external malicious attack, suggesting the issue may stem from internal factors.
In response, Stream Finance has retained the services of lawyers **Keith Miller and Joseph Cutler** from the law firm Perkins Coie LLP. Their role is to thoroughly investigate the incident and oversee the withdrawal of all liquid assets—an operation expected to conclude soon.
The post stated, “To keep our stakeholders informed, we will provide periodic updates as additional information becomes available.” It also clarified that “until we are able to fully assess the scope and causes of the loss, all withdrawals and deposits will be temporarily suspended. Any pending deposits will not be processed at this time.”
Stream Finance described the decision to retain Perkins Coie LLP as proof of the platform’s unwavering commitment to transparency and strong corporate governance.
### Elixir’s Response to the Situation
Elixir has addressed the Stream incident, asserting, “Elixir has full redemption rights at $1 with Stream for its lending position.” The Elixir team highlighted that they are “the only creditor with these 1:1 rights,” confidently declaring that **deUSD remains fully backed**. Elixir is currently in the process of unwinding its lending position with Stream, working alongside the Suilend team to mitigate the fallout.
### Broader Context: DeFi Industry Faces Significant Losses
The DeFi sector has experienced a challenging year marked by multiple costly exploits. Reports indicate that Stream Finance’s loss came less than 24 hours after another yield-focused DeFi protocol, **Balancer**, suffered exploits across multiple blockchains, resulting in a loss exceeding **$100 million**.
Mikko Ohtamaa, co-founder and CEO of Trading Strategy, suggested that the Balancer incident was due to a defective smart contract, where concurrent transactions caused alterations in internal balance accounting. The exploit is considered one of the largest DeFi hacks this year and occurred just days after a smaller theft amounting to **$5.5 million** from the Garden Finance bridge.
While smaller exploits often go unnoticed, their cumulative impact paints a sobering picture of the risks within the DeFi landscape.
According to a report by **Peckshield**, 20 major DeFi platforms were exploited in September alone, suffering collective losses exceeding **$127 million**—a 22% decrease compared to August’s $163 million in losses.
### Total DeFi-Related Losses in 2025 Surpass $3 Billion
Year-to-date, the total losses across the DeFi ecosystem have now surpassed **$3 billion**. Among the biggest casualties is **Bunni DEX**, which completely shut down after losing over **$8 million** to hackers. The platform also lost the ability to cover new security audit costs, forcing its closure.
Unlike other platforms that continue to operate while addressing vulnerabilities, Bunni DEX’s shutdown serves as a stark reminder of the severity of risks in decentralized finance.
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https://bitcoinethereumnews.com/finance/suilend-pauses-deposits-and-withdrawals-specifically-in-its-elixir-isolated-market-in-response-to-a-major-loss-reported-by-stream-finance/
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