Elixir, a decentralized finance (DeFi) platform, has stopped supporting its synthetic stablecoin, deUSD.
This decision follows Stream Finance, one of Elixir’s borrowers, reporting a $93 million loss in assets.
Stream Finance paused customer withdrawals after revealing that an external fund manager was responsible for the large financial loss.
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The protocol also has debts totaling around $285 million, with about $68 million owed specifically to Elixir. This situation affected Elixir’s ability to continue offering deUSD as planned.
In a post on X shared on November 6, Elixir stated that 80% of deUSD holders have already redeemed their tokens. As a result, the value of deUSD dropped.
Stream Finance had previously borrowed deUSD to support its own token, Staked Stream USD (XUSD). However, after the loss was revealed, XUSD’s price dropped to around $0.10.
Elixir had launched deUSD in July 2024 with the goal of becoming a leading synthetic stablecoin.
Currently, Stream Finance is believed to control nearly 90% of the remaining deUSD tokens, valued at about $75 million. Elixir claimed that Stream has not made any decisions to repay or close its loan positions.
In response, Elixir is working with other DeFi platforms, such as Morpho, Compound, and Euler, to ensure users can still receive the full value of their holdings.
On November 4, Yields and More (YAM) uncovered large sums linked to its lending and synthetic asset activities following Stream Finance’s shutdown. What did they say? Read the full story.
