Silo DAO will take legal action against Stream Finance to recover outstanding loans and redeemed funds from xUSD and xBTC.

According to an official announcement from Silo Labs, the decentralized lending protocol Silo DAO is preparing legal action in response to Stream Finance's failure to repay loans and redeem xUSD and xBTC. This incident has resulted in some borrowers being unable to recover their funds. Silo DAO stated that this action aims not only to recover funds but also to set a precedent for protecting borrowers' rights in the DeFi space. The next steps include collecting borrower information and balances, coordinating with legal counsel, transparently sharing legal costs, and seeking to maximize repayment and distribute it proportionally. Silo DAO emphasizes that smart contracts cannot fully protect borrowers' rights, and legal means are a necessary supplement.