v0 previewGrades are draft or provisional: produced under Methodology v0.2.1 from public evidence, pending re-verification and issuer right-of-reply. Nothing here is investment advice, and these are not credit ratings.
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xUSD

Stream Finance · Failed synthetic yield dollar · Ethereum · as of 2026-07-11

TOMBSTONE. Collapsed 4 Nov 2025 after a $93M loss attributed to an external fund manager's discretionary trading; token fell ~77% and triggered ~$285M in cross-protocol contagion through looped collateral positions on Morpho, Euler, Silo and Gearbox. The type specimen for why this rating category exists: undisclosed manager discretion + hardcoded par pricing + recursive leverage.

Realized loss event — tombstone
Undisclosed external manager
Hardcoded-par oracle while used as collateral
F
9.8
tombstoneconf high
Haircut: 100.0%
realized loss event -> 100%
Illustrative — not a margin requirement.
Backing & reserves15 · 25%
Backing was discretionary off-chain trading; $93M misappropriation per litigation. [1]
Redemption & exit5 · 20%
Redemptions halted at collapse. [1]
Counterparty & custody5 · 15%
Single external manager with unilateral discretion. [1]
Peg & market infrastructure10 · 15%
Hardcoded $1 oracles in lending markets masked insolvency until failure. [1]
Leverage & rehypothecation5 · 15%
Looping amplified $93M loss into $285M exposure. [1]
Transparency & governance20 · 10%
Strategy and manager arrangements undisclosed pre-failure. [1]
What would change this grade: None. Realized loss event.
Live price

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Model signals
Not yet computed

The quantitative signal layer (stress-tested loss distributions, peg/leverage/backing metrics) is in development — see pivot/08_QUANT_ENGINE_SPEC.md. When live, signals are computed continuously by a model; grades are always signed by the analyst. The two are shown separately and never conflated.

Evidence appendix
Backing & reserves: [1]
Redemption & exit: [1]
Counterparty & custody: [1]
Peg & market infrastructure: [1]
Leverage & rehypothecation: [1]
Transparency & governance: [1]
As of 2026-07-11 · Methodology v0.2.1