Elixir Shuts Down deUSD Stablecoin After Stream Finance’s $93 Million Loss

Elixir, a decentralized finance liquidity provider, announced the shutdown of its deUSD synthetic dollar stablecoin after Stream Finance disclosed a $93 million loss. This loss occurred because Stream Finance, which managed 65% of deUSD's collateral, lost funds using its own stablecoin (xUSD) as collateral, causing xUSD to drop significantly and effectively wiping out deUSD's backing. Following the incident, Stream Finance suspended withdrawals and deposits. Elixir responded by halting deUSD and initiating redemptions, ensuring 80% of holders could redeem their assets for a dollar equivalent, primarily in USDC, while warning users that deUSD now holds virtually no value. Stream Finance still holds about 90% of the deUSD supply and has not closed its lending positions, prompting Elixir to coordinate liquidation processes with other protocols, expecting all claims to be honored 1:1.

(Source：BeInCrypto)