Renowned trader Cbb0fe has raised concerns about the transparency and potential risks associated with Stream Finance's xUSD. According to Cbb0fe, xUSD is backed by approximately $170 million on-chain, yet the platform has borrowed around $530 million from lending protocols, equating to a leverage of 4.1 times. Additionally, some positions reportedly suffer from poor liquidity. In response, Stream Finance founder Solettyy stated that the company is integrating third-party verifiers this week to address transparency issues. Solettyy clarified that xUSD is a neutral fund token, not a stablecoin, and is over-collateralized with an insurance fund. Most of the funds are allocated across centralized exchanges (CEX) and decentralized exchanges (DEX) not tracked by DeBank. Stream Finance received investment from Polychain in April 2024.