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Lending

Lending protocols form the backbone of the decentralized money market, allowing users to lend or borrow digital assets without intermediaries. Using smart contracts, platforms like Aave and Morpho automate interest rates based on supply and demand while requiring over-collateralization for security. The 2026 lending landscape features advanced permissionless vaults and institutional-grade credit lines. This tag covers the evolution of capital efficiency, liquidations, and the integration of diverse collateral types, including LSTs and tokenized RWAs.

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Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
DeFi Autopsy Report: A Deep Dive into How Stream xUSD Went From "Stablecoin" to Off-Chain Ponzi Scheme

DeFi Autopsy Report: A Deep Dive into How Stream xUSD Went From "Stablecoin" to Off-Chain Ponzi Scheme

Author: Trading Strategy Compiled by: Tim, PANews Stream xUSD is a "tokenized hedge fund" masquerading as a DeFi stablecoin, claiming to operate using a delta-neutral strategy. Currently, this project is insolvent. Over the past five years, several projects have followed this model, attempting to drive their token growth through returns from delta-neutral investments. Successful examples include MakerDAO, Frax, Ohm, Aave, and Ethena. Unlike many of its more purist DeFi competitors, Stream lacks transparency regarding its strategies and holdings. Portfolio tracking platform DeBank shows that only $150 million of its claimed total locked value is visible on-chain. In reality, Stream invested in off-chain trading strategies run by its proprietary traders, some of whom suffered margin calls, reportedly resulting in a $100 million loss. 1. CCN report points out It should be noted that the $120 million hack that Balancer DEX suffered this Monday is unrelated to this. Rumors suggest (which we cannot verify as Stream has not publicly disclosed this information) that the incident allegedly involves an off-chain trading strategy of "shorting volatility." In quantitative finance, "shorting volatility" refers to profiting when market volatility decreases, remains stable, or the actual volatility is lower than the implied volatility in the pricing of the financial instrument. If the price of the underlying asset fluctuates smoothly (i.e., in a low-volatility environment), the option may expire, allowing the seller to retain the premium as profit. However, this strategy is significantly risky; a sudden surge in volatility can trigger huge losses, often described as "picking up coins in front of a steamroller." 2. Detailed Explanation of Shorting Volatility: We experienced such a surge in volatility on "Red Friday," October 10th. As market fervor surrounding Trump-related developments in 2025 continued to build, systemic leverage risk gradually accumulated in the crypto market. When Trump announced his new tariff policy on Friday afternoon, October 10th, panic gripped all markets, quickly spreading to the crypto market. In the midst of this panic, those who rushed to sell their available assets often gained an advantage. This sell-off ultimately triggered a chain reaction of liquidations. Due to the long-term accumulation of leverage risk, systemic leverage has reached a high level, and the perpetual futures market lacks sufficient market depth to smoothly unwind and liquidate all leveraged positions. Under these circumstances, the automatic liquidation mechanism is activated, beginning to distribute losses among profitable traders. This further distorts an already volatile market. 3. What is an automatic position reduction mechanism ? The market volatility triggered by this event is considered a once-in-a-decade event for the crypto market. While not unprecedented—a similar crash occurred in the early 2016 crypto market—most algorithmic traders' strategies were built on recent data of "stable fluctuations" due to a lack of reliable data at that time. Given the market's long absence of such dramatic volatility, even moderately leveraged positions of around 2x were not spared, ultimately resulting in numerous liquidations. Maxim Shilo provides an in-depth analysis of the impact of this "Red Friday" event on algorithmic traders and the potential fundamental shift in trading patterns in the crypto market: 4. Shilo discusses how October 10th will change algorithmic trading in the crypto market. Now, the first bodies of victims have emerged from the "Red Friday" attacks, and Stream is among them. The fundamental definition of a delta-neutral fund is that it will not incur losses. If losses occur, it cannot be considered delta-neutral by definition. Stream promised to adopt a delta-neutral strategy, but secretly invested in proprietary, opaque, off-chain operational strategies. Delta-neutral strategies are not always black and white; hindsight is always 20/20. Many experts might argue that these strategies are too risky to be considered truly delta-neutral because they could be counterproductive, and this has proven to be true. When Stream lost its principal in these failed trades, the platform became insolvent. The DeFi sector is high-risk, and some losses are acceptable. As long as you eventually break even and achieve a 15% annual return, a 10% drop in account balance is not fatal. However, the problem lies in the fact that Stream has pushed leverage to the extreme through a "recursive loop" lending strategy with another stablecoin, Elixir. 5. What is a recursive loop? 6. How does Stream increase leverage and its leverage size ? To make matters worse, Elixir, through an off-chain protocol, claims priority in recovering the principal of Stream in the event of its bankruptcy. This means that Elixir will recover more funds, while other DeFi investors in Stream will only recover less (or even lose everything). Due to a lack of transparency, the existence of recursive loops, and proprietary strategies, we are unable to know the actual scale of losses suffered by Stream users. Currently, the price of Stream's xUSD stablecoin has fallen to $0.6 per unit. Because this matter was not disclosed to these DeFi users, many users are now extremely indignant towards Stream and Elixir: they not only suffer financial losses, but are also forced to share the losses to ensure that wealthy Americans with Wall Street backgrounds can preserve their profits. This incident also impacted the loan agreement and its management: "Everyone who thinks they are taking out a secured loan on Euler is actually participating in unsecured lending through a proxy," says Rob from infiniFi. Furthermore, given Stream's lack of transparency regarding its positions and profit/loss status, or the absence of on-chain data, users have begun to question whether Stream has fraudulently misappropriated user profits for its management team. Stream's xUSD stakers rely on self-reported "oracle" data to generate returns, and third parties cannot verify the accuracy or fairness of these calculations. How to deal with it? Such Stream events could have been avoided, especially in emerging industries like DeFi. While "high risk, high reward" is a timeless principle, the key is to understand that risk is not homogeneous, and some risks are simply unnecessary. Several reputable liquidity mining, lending, and stablecoin (essentially tokenized hedge funds) protocols already maintain transparency in their risk exposure, investment strategies, and positions, making them worthy of market attention. Stani, founder of Aave, discussed the timing of DeFi governance and excessive risk-taking, and shared his views on recent events that have brought DeFi risks to the forefront: The survival of DeFi lending rests on trust. One of the biggest fallacies is comparing DeFi lending with AMM (Agent Matchmaker) liquidity pools—the two operate on completely different logics. The lending model can only continue to operate when people are confident that the market mechanism is sound, the collateral assets are reliable, the risk parameters are reasonable, and the system as a whole is stable. Once this trust collapses, an on-chain version of a bank run will occur. This is precisely why the model that allows anyone to deploy a fund pool and promote it on the same platform without permission is inherently flawed. Because most investment strategies are highly homogenized, strategy managers lack effective means to stand out and often can only push fees to the bare minimum or compete for capital from other fund pools by taking on higher risks. One day, a major collapse will destroy market confidence and set back the industry's progress. The next Terra Luna-style crash will inevitably stem from the out-of-control actions of an aggressive strategy manager on an open platform.

Author: PANews

2025/11/06

Top 3 Reasons Why This Token Deserves a Spot in Your 10K Portfolio

Top 3 Reasons Why This Token Deserves a Spot in Your 10K Portfolio

The post Top 3 Reasons Why This Token Deserves a Spot in Your 10K Portfolio appeared on BitcoinEthereumNews.com. Crypto Presales Every crypto investment season brings new projects that combine strong ideas with practical use. Mutuum Finance (MUTM) is one such name now gaining serious attention. It is a decentralized lending platform designed to make borrowing and lending simple, transparent, and rewarding. With its presale now in Phase 6, many investors believe it could become the next crypto to hit $1. A Fast-Moving Presale with Real Momentum Mutuum Finance (MUTM) is currently running its Phase 6 presale at $0.035 per token. Out of the 170 million tokens in this round, most have already been sold, with more than 17,800 holders taking part across all phases. The total funds raised now stand at about $18.5 million, showing steady community support. When the presale moves to Phase 7, the price will rise to $0.040, a 15% increase. Analysts expect the listing to happen around $0.06, which gives Phase 6 investors around 70% upside before launch. Early buyers from Phase 1, who entered at $0.01, already hold assets valued at over three times their initial entry. The team has also added the option to buy using cards, making it easier for anyone to join without any threshold. With these updates and a live leaderboard rewarding top investors already in place, Mutuum Finance (MUTM) continues to draw attention as one of the most active presales in 2025. 1. A Dual Lending System That Works for Everyone The first major reason Mutuum Finance (MUTM) stands out is its two-part lending design. The project will run both Peer-to-Contract and Peer-to-Peer systems. In the Peer-to-Contract model, users will deposit digital assets such as ETH or USDT into smart contract pools. These funds will be available for borrowers, and lenders will earn variable interest based on usage. In the Peer-to-Peer model, users will connect directly with borrowers…

Author: BitcoinEthereumNews

2025/11/06

Metaplanet Secures $100M Bitcoin-Backed Loan to Strengthen Crypto Investments

Metaplanet Secures $100M Bitcoin-Backed Loan to Strengthen Crypto Investments

Metaplanet has secured a $100 million loan backed by its Bitcoin to strengthen its crypto investments and buy company shares back. The Tokyo-traded Bitcoin treasury company affirmed that the loan was done on the 31st of October through a short-term credit contract.  No further details are given about the lender, but the company added that […]

Author: Tronweekly

2025/11/06

Chainlink Enables WisdomTree to Potentially Bridge TradFi and DeFi Markets

Chainlink Enables WisdomTree to Potentially Bridge TradFi and DeFi Markets

The post Chainlink Enables WisdomTree to Potentially Bridge TradFi and DeFi Markets appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → Chainlink enables WisdomTree to bridge traditional finance and DeFi markets by integrating verified fund data onto the Ethereum blockchain, starting with its Private Credit and Alternative Income Digital Fund. This collaboration enhances transparency and interoperability for institutional investors, allowing real-time access to on-chain valuations while maintaining regulatory compliance. WisdomTree’s integration with Chainlink allows verified fund data to be published on Ethereum, marking a key advancement in tokenized assets. This partnership provides decentralized platforms with secure access to traditional financial pricing data for the first time. The initiative begins with the CRDT fund, managing exposure to private credit and alternative income instruments, potentially unlocking new DeFi applications. Discover how Chainlink’s DataLink Services empower WisdomTree to merge TradFi with DeFi, enabling on-chain fund valuations for enhanced transparency. Explore the future of tokenized assets now. What is Chainlink’s Role in WisdomTree’s Blockchain Integration? Chainlink plays a pivotal role in WisdomTree’s blockchain integration by providing its DataLink Services to securely transmit verified fund data to the Ethereum blockchain. As a leading decentralized oracle network, Chainlink ensures that off-chain financial information, such as net…

Author: BitcoinEthereumNews

2025/11/06

11th Circuit Rejects Michael Prime’s Claim to Seized 3,443 Bitcoin

11th Circuit Rejects Michael Prime’s Claim to Seized 3,443 Bitcoin

The post 11th Circuit Rejects Michael Prime’s Claim to Seized 3,443 Bitcoin appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → The 11th Circuit Court of Appeals denied Michael Prime’s motion to return nearly 3,443 Bitcoin valued at approximately $345 million. The court ruled that Prime’s repeated denials and delays made it inequitable to grant the remedy, even if the assets existed on a seized hard drive. Key Ruling: The appeals court affirmed the district court’s decision, citing the doctrine of laches due to Prime’s failure to assert ownership promptly. Prime’s history of denying significant Bitcoin holdings undermined his current claim. Government actions included wiping devices after Prime’s representations indicated minimal assets, per court records from 2019 proceedings. Discover the 11th Circuit’s denial in the Michael Prime Bitcoin case, where delays cost him $345 million in crypto. Stay informed on legal impacts to digital assets—read the full analysis now. What Happened in the Michael Prime Bitcoin Case? The Michael Prime Bitcoin case centers on a 2019 arrest for counterfeiting and identity theft, where federal agents seized an external hard drive allegedly containing over 3,443 Bitcoin. The 11th Circuit Court of Appeals recently ruled against Prime’s 2023 motion for its return,…

Author: BitcoinEthereumNews

2025/11/06

Ripple Secures $500 Million Investment, Valued at $40 Billion Globally

Ripple Secures $500 Million Investment, Valued at $40 Billion Globally

Ripple attracts $500 million investment, boosting its global market presence. New acquisitions strengthen Ripple’s position in payments and stablecoins. RLUSD and Ripple Prime fuel rapid institutional growth worldwide. Ripple has announced a major $500 million strategic investment that now values the company at $40 billion, marking one of its strongest milestones yet. According to the company, the funding round was led by affiliates of Fortress Investment Group, Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace. The move follows Ripple’s recent $1 billion tender offer at the same valuation, reflecting strong investor confidence in its expanding global vision. Besides boosting its capital strength, Ripple continues to prioritize shareholder and employee value. Over the past few years, the company has repurchased more than 25% of its outstanding shares, ensuring liquidity for early investors. Its latest tender offer attracted strong interest from institutions eager to join its cap table, prompting Ripple to accept new equity that strengthens partnerships with global financial leaders. Also Read: Ripple’s IPO Value Tied to XRP Market Price? Researcher Explains How Ripple CEO Brad Garlinghouse said the investment highlights both the company’s growing momentum and the market’s trust in its long-term strategy. He emphasized that Ripple has evolved from focusing solely on payments to expanding into custody, stablecoins, prime brokerage, and corporate treasury solutions built on digital assets like XRP. Ripple Expands Market Presence with Acquisitions and Product Growth In the last two years, Ripple has completed six acquisitions, including two deals worth over $1 billion. These moves have extended its influence across payments, custody, and stablecoin infrastructure while opening new markets in prime brokerage and treasury management. Earlier this year, Ripple acquired stablecoin platform Rail, enhancing Ripple Payments with faster, more efficient cross-border capabilities using XRP and Ripple USD (RLUSD). The company now holds 75 regulatory licenses, enabling it to move money directly for clients without intermediaries. Ripple Payments volumes have surpassed $95 billion, reflecting strong institutional demand and real-world adoption. Following the GENIUS Act, institutions increasingly rely on stablecoins like RLUSD for treasury payments and collateral. Ripple’s acquisition of GTreasury supports this transition, giving Fortune 500 clients access to round-the-clock digital asset operations. Ripple Prime and RLUSD Drive Institutional Growth Ripple recently rebranded Hidden Road as Ripple Prime, which now facilitates collateralized lending for XRP. Since the acquisition, client collateral has doubled, average daily transactions have risen above 60 million, and RLUSD’s market cap has exceeded $1 billion in under a year. Ripple’s new investment round and strategic acquisitions reinforce its commitment to shaping the future of digital finance while deepening its partnerships with the world’s top financial institutions. Also Read: Canada Moves to Regulate Fiat-Pegged Stablecoins in 2025 Federal Budget The post Ripple Secures $500 Million Investment, Valued at $40 Billion Globally appeared first on 36Crypto.

Author: Coinstats

2025/11/06

Stablecoin News: Bank of England Moves to Align Stablecoin Rules with U.S. Standards

Stablecoin News: Bank of England Moves to Align Stablecoin Rules with U.S. Standards

Bank of England Deputy Governor Sarah Breeden affirms the UK’s commitment to swiftly align stablecoin rules with the US, proposing temporary holding limits to manage financial risk. The Bank of England (BoE) is taking proactive steps to finalize its stablecoin regulatory framework. According to Bloomberg, BoE Deputy Governor Sarah Breeden said recently that new rules […] The post Stablecoin News: Bank of England Moves to Align Stablecoin Rules with U.S. Standards appeared first on Live Bitcoin News.

Author: LiveBitcoinNews

2025/11/06

Senator Lummis: Community Banks Need to Embrace Bitcoin by 2026

Senator Lummis: Community Banks Need to Embrace Bitcoin by 2026

U.S. Senator Cynthia Lummis has issued a clarion call for community banks to embrace Bitcoin and cryptocurrency, predicting that 2026 will mark a pivotal year for mainstream Bitcoin adoption across the American banking sector.

Author: MEXC NEWS

2025/11/06

Chainlink Enables WisdomTree to Bridge Traditional and DeFi Markets

Chainlink Enables WisdomTree to Bridge Traditional and DeFi Markets

The post Chainlink Enables WisdomTree to Bridge Traditional and DeFi Markets appeared on BitcoinEthereumNews.com. BlockchainFintech A major step toward merging institutional finance with decentralized infrastructure is underway. Key Takeaways: WisdomTree expands its blockchain integration through Chainlink. Verified fund data to be published on Ethereum. Collaboration aims to bridge traditional finance and DeFi.  Global asset manager WisdomTree has selected Chainlink’s DataLink Services to transmit verified fund data directly to the Ethereum blockchain, starting with its Private Credit and Alternative Income Digital Fund (CRDT). The initiative gives one of the world’s largest asset managers—over $130 billion under management—a way to publish fund valuations on-chain, allowing decentralized platforms to access and use verified pricing data for the first time. Real-World Assets Meet On-Chain Data At the core of this collaboration is a push to make traditional financial products interoperable with DeFi systems. The move will see the CRDT fund’s Net Asset Value (NAV) streamed securely through Chainlink’s data infrastructure, providing transparency to token holders and liquidity providers while keeping compliance intact. WisdomTree said the partnership is part of a broader plan to expand blockchain integration across its product lineup. Future tokenized funds in its portfolio are expected to follow the same model once the CRDT pilot goes live. Tokenized Credit, Now Visible On Ethereum The CRDT fund, introduced on September 12, 2025, offers diversified exposure to private credit and alternative income instruments, benchmarked against the Gapstow Private Credit and Alternative Income Index. By moving NAV data to the Ethereum mainnet, the project effectively allows investors and smart contracts to read the fund’s value in real time. This transparency could enable entirely new categories of DeFi applications—such as lending markets that price risk using real-world credit data, or automated portfolios that rebalance according to on-chain fund valuations. The Broader Implications For Chainlink, the integration represents another milestone in bridging traditional finance and blockchain. Its DataLink Services have become…

Author: BitcoinEthereumNews

2025/11/06

Elon Musk’s Post Drives DOGE-1 Surge of 300% Amid Meme Token Volatility

Elon Musk’s Post Drives DOGE-1 Surge of 300% Amid Meme Token Volatility

The post Elon Musk’s Post Drives DOGE-1 Surge of 300% Amid Meme Token Volatility appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → Elon Musk’s cryptic “It’s time” post on X triggered a nearly 300% surge in DOGE-1, a meme token tied to a SpaceX mission, before a partial retreat. On-chain data shows trader god.sol buying 16.27 million tokens, boosting market activity amid broader crypto declines. Elon Musk’s “It’s time” post sparked a 300% DOGE-1 surge, drawing attention to the token’s ties to SpaceX’s lunar mission. On-chain analysis from Lookonchain revealed trader god.sol acquiring 16.27 million DOGE-1 tokens for about $14,800 in SOL shortly after the post. DOGE-1 outperformed Dogecoin in a risk-off market, with liquidity shifting to smaller meme tokens; the token later corrected 17.4% to $0.73. DOGE-1 surges 300% after Elon Musk’s “It’s time” post reignites meme coin frenzy. Explore on-chain buys and market shifts in this crypto news update. Stay informed on Dogecoin ecosystem developments today. What Caused the DOGE-1 Surge After Elon Musk’s Post? DOGE-1 surge was primarily ignited by Elon Musk’s ambiguous “It’s time” message on X, which referenced past promises about sending Dogecoin to the moon via SpaceX. This post, made in response to a repost…

Author: BitcoinEthereumNews

2025/11/06

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