Stream Finance

@anze____ This is not the external fund manager, this is in house, for clarity zero funds were lost in house.

Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets. In response, Stream is in the process of engaging Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP, to lead a comprehensive investigation into the incident. We are actively withdrawing all liquid assets and expect this process to be completed in the near term To keep our stakeholders informed, we will provide periodic updates as additional information becomes available. 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. Our decision to retain Perkins Coie LLP reflects Stream’s unwavering commitment to transparency and robust corporate governance.

The intention was for these funds to always be used as an insurance fund, this is what internal communications have been saying for months, including @klyra's dated investor updates. We agree we have not been as transparent as we should have been on how the insurance fund works. We are working to change this and make it more apparently 1) How / when fees are applied and with what methodology 2) What split of fees goes to insurance fund vs operations (has historically roughly 90-10) 3) We are also in the process of separating the wallets for each strategy and for the insurance fund. This takes time as you know given all the different positions across multiple chains that need to be unwound and moved.

"This increased yield then goes back to users for the tradeoff of increasing risk as the underlying strategy is now levered" That's the problem - it wasn't going back to users at all, it was in an 'insurance fund' that was only disclosed after this was all pointed out. Moreover, the 'insurance fund' isn't segregated, and is just surplus profits in the same strategies as the 'normal' book. Therefore, hard for anyone to believe that it is an insurance fund at all, if it's exposed to the same strategies that it's supposedly insuring against. Can only conclude that it's a c. 60% undisclosed fee retained by the team that was walked back once exposed

Over the last few days, there have been a lot of questions about recursive looping, what it is, and why we use it. Recursive looping is when a protocol loops its own asset to capture a spread in interest rates. For example, if you have an asset earning 15% that you can borrow against at 10%, on 1x you make 15% (no borrow cost), on 2x you make 20%, 3x 25%, 4x 30%, etc. This increased yield then goes back to users either in the form of yield or our insurance fund. This allows users to earn more while taking on more risk. DefiLlama has decided that recursive looping is not TVL per their own definitions. We disagree with this, but to be transparent to users the website now makes a distinction between user deposits (~$160M) and total assets deployed across strategies. (~%$520M). To make this easier to understand for users and not show different numbers that are confusing, we have also updated our website. We have signed letters of engagement with third party attestation companies and have shared access to our books. These things take time to do right, but we are moving as fast as we can to give users guarantees. In the meantime, our dashboard has been updated with a breakdown of where funds are deployed to. dashboard.streamprotocol.money

@Liquidity4U @x256xx Hi Exit, If you look at the debank addresses provided on lighter, you can see an addition $200M. You can also see transfers from these wallets onchain to CEXs. We agree it is not ideal setup currently which is why we are pushing as hard as we can on attestations.

@StreamDefi @x256xx dont worry i understand the looping, i dont understand how your numbers dont line up at all your pie chart is clearly made up with no real data while you scramble to get a real one set up. your dashboard explains nothing and your debank is harder to read than beowulf

THE NUMBERS THE NUMBERS THE NUMBERS THEYRE DIFFERENT EVERYWHERE THEYRE DIFFERENT WHAT IS IT WHAT DOES IT MEAN @x256xx DO YOU UNDERSTAND

Happy to announce Stream has signed letters of engagement with various reputable firms, who will be handling our proof of reserves, >400m of our backing is public and transparent on chain, In the mean time we have shared our books to various curators and are in the process of completing a transparency dashboard to make it easier for users to digest Feel free to reach out with any questions regarding this process and we are more than happy to address them all!

@MoistyPoisty @TheDeFinvestor @heyitsStylez @solsticefi Yep! Delta neutral strats are more efficient on CEXs, as you can see w Ethena's distribution

@StreamDefi @TheDeFinvestor @heyitsStylez @solsticefi also a lot is going straight to bybit

I've done a few new airdrop interactions recently and thought I'd share them here 1. Bought USX with USDC on @solsticefi Solstice can be seen as the "Ethena of Solana". It seems to be the hottest new stablecoin app on Solana, and it just surpassed $215M in TVL. I think it could do a decent airdrop as this is the first stablecoin protocol native to Solana that gained significant traction. You can already use Solstice's USX stablecoin in DeFi, but I'm waiting for some new DeFi integrations to go live before doing that. 2. Bought more @USDai_Official's USDai at $1.01 and provided it as liquidity on Pendle USDai is a stablecoin protocol with $580M+ TVL (live on Arbitrum L2 and Plasma) that gives loans to AI companies to earn high yields. The protocol raised $ 17.40M in funding, and all its recent TVL cap increases have been filled in minutes. (that's why $USDai stablecoin is now trading above the peg) But you can still buy USDai on DEX aggregators like CowSwap (I think it's worth doing it only when it's trading below $1.015) The insane demand to deposit funds on it makes me think it's worth farming this one, as its TVL caps make it very hard to farm. 3. Deposited USDC and ETH on @StreamDefi Stream is another stablecoin protocol. Its team is using the funds deposited in its vaults for yield farming strategies, and so far, it has been able to generate some great yields: • 15% APY on USDC • 8% APY on ETH • 6% APR What surprised me is that it reached $500M in TVL with almost no marketing. Stream has a hidden points program, but you can't see your points on the UI yet. Other things I'm looking at: • @Infinit_Labs has just released "INFINIT Strategies", and, for instance, you can use its "Delta-Neutral - KAITO" strategy from its app to earn 28% APY on stablecoins in 1-click • @trylimitless and @MyriadMarkets seem to be the fastest growing *new* prediction markets Given that prediction markets are one of the top narratives right now, it might be a good idea to start farming them. Very few people seem to do that, as their trading volume is pretty low. Yet both Limitless and MYRIAD have points programs live. • @megaeth has recently announced its ICO on Sonar - there aren't many details about it yet, but given the massive hype around MegaETH, it may be a good opportunity I didn't include perps DEXs here as I've mentioned them a lot lately, but I am still heavily farming dApps such as Extended, Lighter, and Paradex by generating trading volume. And that's it. I hope this post helps! I'm thinking of starting to make more posts like those in the future if there's interest.

@danyokkuu @domdotx @0xlawlol Just use Stream

@domdotx @0xlawlol @StreamDefi 18% FOR STABLECOIN? WADAFAK

@MoistyPoisty @TheDeFinvestor @heyitsStylez @solsticefi Hi Moisty! You are right, there is a big gap right now, given our dramatic growth, some things like the transparency dashboard were not upgraded. We are in the process now of unveiling a new dashboard and having third party attestations. Thanks for the feedback :)

@TheDeFinvestor @heyitsStylez @solsticefi @StreamDefi Except they claim 500m tvl and there’s only 145m on chain…

@0x63FaD @Cbb0fe @reservoir_xyz Stream does not curate any markets or participate in any self lending period for full transparency🫡

@Cbb0fe @reservoir_xyz & @streamdefi do the same

> Risk managers are curating vaults on Morpho / Euler > Risk managers have started to launch their own yield-bearing stablecoins on Midas > Users are aping USDC into these new stablecoins > Risk managers are deploying these USDC into their own vaults on Morpho / Euler > Users are borrowing USDC against these new stablecoins to ape more into these new stablecoins > Doesn't look super healthy to me

Over the past few weeks, we’ve significantly strengthened the off-chain security of @StreamDefi and will be working with top penetration testers to ensure our website and server infrastructure meet the highest security standards. @StreamDefi users benefit from our ability to consistently generate yields above the market. To preserve this edge, we can’t disclose every strategy or position. However, it’s clear that transparency must remain a top priority. We’ll therefore be integrating with trusted third parties to provide proof of funds. Our positions span both DeFi and CEXs. We recognize that each carries unique risks — and it’s our job to manage them responsibly on behalf of our users. • When integrating with DeFi protocols, we conduct thorough testing and have identified (and responsibly disclosed) numerous vulnerabilities through this process. • When using CEXs, we purchase insurance coverage to protect user funds — and we’ll be making these policies publicly verifiable soon. Lastly, we’ve begun building an insurance fund, continuously allocating a portion of profits to grow it over time — further reinforcing the long-term safety of our users’ assets. We appreciate any and all feedback on how we can improve @StreamDefi for our users Just use Stream

@kamaromponx Its same structure as Ethena etc, is to process updates in NAV dynamically Should be possible alr

Today was an incredible test for all major protocols Stream has functioned as intended, and remains in profit. A full breakdown of how we managed risks and exposure will be published when the dust settles For those particularly badly hit, we are also hiring! Just use Stream

@apostlehearty BD, technical, front end, everything

@phtevenstrong @AzFlin @strata_money @noon_capital @yield @0xlawlol Can confirm

@AzFlin @strata_money @noon_capital @StreamDefi @yield @0xlawlol I hope I'm not just saying things, lol 0xlaw please confirm or deny my insanity

I had the chance to speak to @strata_money today. What they're building is pretty cool. They're splitting assets like sUSDe, HLP, mMEV, etc into senior and junior tranche derivatives. Senior: Lower yield, principal protected Junior: Higher yield, takes on first losses

Excited to announce the next piece of the puzzle. Making swaps? Just use Klyra.

@FishyDeFi Billions imminent

Clearly one of the hardest working teams in the space, congrats and excited for billions soon 🎯