Tag: dollar-pegged stablecoin-like asset

Suilend pauses deposits and withdrawals specifically in its Elixir Isolated Market in response to a major loss reported by Stream Finance

The post Suilend pauses deposits and withdrawals specifically in its Elixir Isolated Market in response to a major loss reported by Stream Finance appeared com. DeFi lending protocol Suilend has taken precautionary measures in response to a major loss reported by Stream Finance, which is having ripple effects in the Sui ecosystem. One of the worst hit was Elixir, a protocol that appears to have borrowed against assets linked to Stream Finance’s xUSD, a dollar-pegged stablecoin-like asset. Suilend takes action against Elixir A few hours after Stream Finance announced that it had taken a huge loss, Suilend posted an update on X, assuring users that the team was keeping a close eye on the developing issue affecting Elixir’s deUSD. The post also stated that deposits and withdrawals in the Elixir Isolated Market have been paused, and communications have been attempted as Suilend demands loan repayment. In the meantime, the team says that “all other Suilend markets are unaffected and remain safe.” The post directly quoted the post from Stream Finance that contained information about the huge loss it had taken. According to the post, the loss occurred through an external fund manager overseeing Stream funds, and the total amount lost was approximately $93 million in Stream fund assets, as Cryptopolitan reported earlier today. Stream Finance’s community suspects that the fund manager may have used customer deposits for risky investments, as the protocol has not shared any evidence of a hack or external malicious attacks. This suggests that the problem may have been internal, and Stream has responded by engaging the services of Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP to look into the incident thoroughly and initiate a withdrawal of all liquid assets, a process that is expected to be completed in the near term. “To keep our stakeholders informed, we will provide periodic updates as additional information becomes available,” the post read. “Until we are able to fully assess.