DeFi protocols Stream Finance (xUSD) and Stable Labs (USDX) have suffered significant depegging events, revealing vulnerabilities in the delta-neutral stablecoin model. These protocols, which offered high yields through opaque off-chain strategies, collapsed amid market volatility on October 11, leading to widespread losses.
The crisis has extended to curator-managed lending pools on platforms such as Euler and ListaDAO, where users inadvertently invested stablecoins in high-risk strategies. Over $30 billion in curator-managed funds have been withdrawn, exacerbating liquidity and trust issues within the DeFi ecosystem.
DeFi Protocols Face Crisis as Delta-Neutral Stablecoins Depeg
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