Suilend Halts Elixir Market Operations Amid Stream Finance’s $93M Loss Fallout
DeFi lending protocol Suilend has suspended deposits and withdrawals in its Elixir Isolated Market following a $93 million loss reported by Stream Finance. The incident, involving an external fund manager's alleged mismanagement of Stream's xUSD-backed assets, has sent shockwaves through the sui ecosystem.
Elixir protocol appears heavily exposed, having borrowed against assets tied to Stream's stablecoin-like xUSD. Suilend confirmed communications with Elixir demanding loan repayment while assuring users that all other markets remain operational and secure.
The crisis highlights the interconnected risks in DeFi ecosystems, where protocol-specific failures can rapidly cascade. Market participants now scrutinize risk management practices across lending platforms as regulators increase oversight of crypto's shadow banking systems.
