Rekt - House Of Cards

Stream Finance's xUSD and Elixir Network's deUSD stablecoins are described as a recursive minting loop that allegedly inflated supply far beyond the capital behind it. Schlag's research alleges that $1.9 million in USDC minted $14.5 million in xUSD, and allegations put $70 million supplied and over $65 million borrowed in a single Morpho market where Elixir was the sole depositor. Hyperithm, which manages the mHYPER vault, said on October 28, 2025 that it had removed all yUSD and xUSD exposure. Stream's proof of reserves is still listed as coming soon, and Elixir's documentation says deUSD is not pegged 1:1 through a reserve.