On the 8th of August 2025 at 20:28 CEST the funding stream from ENS DAO treasury to the stream.mg.wg.ens.eth ****wallet was liquidated due to the ENS DAO treasury USDCx balance being fully depleted. Subsequently on the 9th of August 2025 at 23:24 CEST the ongoing streams from stream.mg.wg.ens.eth to service providers were liquidated due to full depletion of the USDCx balance.

ENS DAO had decided to provide a limited allowance to the Superfluid AutoWrap contract to limit exposure to the protocol in case of an incident, therefore increasing safety and limiting possible damage in case of exploit. AutoWrap triggers an automated wrapping of USDC to USDCx based on a wallet balance to sustain outgoing streams without requiring any manual intervention.

In this case, the automation behind AutoWrap failed to trigger the onchain wrap transaction for USDC resulting in the USDCx balance being fully depleted and the streams liquidated. The failure was due to an internal service migration and the lack of a monitoring instance for the backup system that was running this specific automation service.

To avoid similar events from happening in the future the service was updated and monitoring for the AutoWrap automation service was enabled.

All stream liquidations fees will be fully refunded to the ENS wallets that suffered them in this incident. If you would like to read a more technical post-mortem please reach out in the Superfluid Discord.