Essential Risk Management: How to Prevent Another Stream Finance Crisis

BitcoinWorld Essential Risk Management: How to Prevent Another Stream Finance Crisis The recent Stream Finance collapse sent shockwaves through the DeFi ecosystem, but could proper risk management have prevented this disaster? Tiger Research’s eye-opening analysis reveals exactly what went wrong and how the industry can build stronger safeguards for the future. What Caused the Stream Finance Crisis? Tiger Research’s investigation uncovered critical failures in Stream Finance’s operations. The project claimed to use market-neutral strategies for stable returns, but operated with concerning opacity. The firm found no proof of reserves or confirmed insurance fund, creating massive vulnerability in their system. The trigger came when CBB raised alarms about xUSD’s borrowing practices. The stablecoin had borrowed $530 million against only $170 million in on-chain collateral – a dangerous 4.1 times leverage ratio. This risky position became unsustainable when Balancer experienced a hack, sparking investor panic and mass withdrawals. Why Is Risk Management...

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