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 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.”
Stream Finance has called its decision to retain Perkins Coie LLP proof of the platform’s unwavering commitment to transparency and robust corporate governance. Elixir has also responded to the Stream debacle with a post claiming, “Elixir has full redemption rights at $1 with Stream for its lending position.”
“We are the only creditor with these 1-1 rights,” the team has boasted, while declaring that deUSD remains fully backed as Elixir begins the process of unwinding its lending position to Stream, alongside the team.
The DeFi industry has faced significant losses this year.
Reports claim that the loss Stream Finance endured came less than 24 hours after another yield-focused DeFi protocol, known as Balancer, faced exploits across multiple chains that led to a loss of over $100 million.
The co-founder and CEO of Trading Strategy, Mikko Ohtamaa, has suggested that the fault lies with a defective smart contract, as concurrent transactions had been altering internal balance accounting.
The exploit is being floated as one of the biggest DeFi hacks this year and comes days after a smaller theft of $5.5 million from the Garden Finance bridge. Small exploits like that don’t often make headlines, but the losses add up, painting a grim picture of what has been going on in the DeFi sector this year.
According to a Peckshield report, 20 major DeFi platforms were exploited in September alone, which led to a collective loss of over $127 million, a 22% decline from August’s loss of $163 million. Meanwhile, total DeFi-related losses in 2025 have now crossed $3 billion, with the Bunni DEX being one of the biggest losers.
Unlike the other platforms that are still able to operate and take steps to fix the damage, the Bunni DEX completely shut down after it reportedly lost over $8 million to hackers and lost the ability to cover new security audit costs.
