A recent CBB article highlights concerns regarding high leverage risks associated with Stream’s xUSD. In response, the team has announced measures to enhance collateralization and transparency. The article emphasizes the potential dangers of high leverage in financial products, particularly in the context of xUSD. To address these concerns, the Stream team has committed to overcollateralization, ensuring that assets backing xUSD exceed the liabilities. This strategy aims to mitigate risks and provide greater security for users. Additionally, the team has pledged to improve transparency, which includes clearer communication about the mechanisms and risks involved in using xUSD. This commitment is intended to foster trust and confidence among users and stakeholders. The team believes that by taking these steps, they can better safeguard the interests of their community while addressing the issues raised in the CBB article.
