Elixir sunsets deUSD synthetic stablecoin following Stream Finance unwinding, aims for full redemptions

Elixir has decided to sunset its deUSD synthetic dollar stablecoin following losses incurred from the unwinding of the DeFi protocol Stream Finance. Stream Finance halted withdrawals after disclosing a $93 million loss, owing Elixir over $68 million. Elixir’s deUSD, launched mid-2024 as a decentralized alternative to Ethena's USDe, was used by Stream to backstop its own depegged xUSD stablecoin. Although Elixir disabled the mint/redeem infrastructure for deUSD, the protocol is committed to redeeming 100% of deUSD claims 1:1 for USDC. Elixir has already processed redemptions for 80% of holders and is setting up a claims portal. The team is working with decentralized lenders like Euler, Morpho, and Compound to liquidate its Stream positions and distribute repayments, maintaining confidence that the full value will be honored.

(Source：The Block)