Elixir Halts deUSD Support After Stream Finance's $93M Blow

Friday Nov 7 2025 05:10

Duration

2 min

  1. 1. Elixir Withdraws deUSD Backing Following Stream Finance Turmoil

  2. 1.1 80% of deUSD Redeemed Prior to De-pegging

  3. 1.2 Stream Finance's $93 Million Setback

  4. 1.3 The Stream Finance Effect on deUSD

  5. 1.4 Elixir Seeks Repayment from Stream

  6. 1.5 Withdrawals Suspended

  7. 1.6 deUSD's Future Unclear

Elixir Withdraws deUSD Backing Following Stream Finance Turmoil

The decentralized finance (DeFi) sector experienced a jolt this week as Elixir, a liquidity provider, announced it would cease support for its synthetic stablecoin, deUSD. This decision stems from a substantial $93 million loss disclosed by Stream Finance, sending ripples through the stablecoin ecosystem.

80% of deUSD Redeemed Prior to De-pegging

Elixir stated via an X post that it has successfully processed redemptions for 80% of all deUSD holders. However, this action triggered the stablecoin's de-pegging from the US dollar, plummeting its value to 1.5 cents, according to CoinGecko data. This represents a significant drop from its intended $1 parity.

Stream Finance's $93 Million Setback

Stream Finance suspended withdrawals on Tuesday after an external fund manager revealed a $93 million shortfall in net assets. This included approximately $285 million in debt to various lenders, with Elixir holding a $68 million exposure.

The Stream Finance Effect on deUSD

Stream Finance utilized deUSD to stabilize its Staked Stream USD (XUSD) stablecoin, which saw its value dip to $0.10 after the disclosed loss. Elixir launched deUSD in July 2024 with ambitions to rival Ethena Labs' USDe as a leading synthetic stablecoin. Before de-pegging, deUSD boasted a market capitalization of approximately $150 million.

Elixir Seeks Repayment from Stream

Elixir alleges that Stream Finance controls roughly 90% of the remaining deUSD supply, valued at $75 million. They further claim that Stream Finance has opted not to repay or close these positions, compelling Elixir to collaborate with other decentralized lenders, including Euler, Morpho, and Compound, to fully reimburse deUSD holders.

Withdrawals Suspended

Elixir made the decision to halt withdrawals, in part, to "eliminate any risk of Stream liquidating deUSD before repaying their loan." As of now, Stream Finance has not responded to requests for comment.

deUSD's Future Unclear

The future of deUSD remains uncertain. Elixir is focused on managing the remaining redemptions and hopes that Stream Finance will honor its commitments. However, these events highlight the inherent risks within the decentralized finance space and the complexities of synthetic stablecoins.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

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Written by:

Noah Lee

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