Elixir Stablecoin Ends After Stream Finance $93M Loss
- Elixir’s deUSD stablecoin was discontinued due to Stream Finance’s $93 million loss.
- Caused major disruptions in DeFi markets.
- Widespread impact, affecting other protocols and assets.
Elixir’s deUSD stablecoin crumbled following Stream Finance’s $93 million loss, leading to widespread DeFi instability confirmed by on-chain data and official statements as of November 7, 2025.
The collapse highlights significant vulnerabilities in DeFi protocols, impacting tokens like xUSD, deUSD, USDC, and triggering massive market fluctuations.
Elixir’s deUSD stablecoin was ended after Stream Finance’s $93 million loss, causing further DeFi disruption.
The collapse highlights systemic vulnerabilities and has led to reassessment across the cryptocurrency market, provoking urgent calls for risk management.
Stream Finance’s $93M Loss Shuts Down deUSD
Stream Finance’s catastrophic $93 million loss led to the discontinuation of Elixir’s deUSD stablecoin. This event has triggered significant distress across the DeFi ecosystem as on-chain data confirms widespread impact.
The crisis was primarily due to opaque trades executed by an external Curator at Stream Finance. Elixir is actively addressing the consequences, having publicly acknowledged the scale of the downfall. “Management practices exhibited during this crisis have raised serious questions regarding the integrity of operations.”
DeFi Markets Face Turmoil Post deUSD Collapse
Market effects include severe liquidity outflows and sharp declines in the value of affected stablecoins. Elixir’s losses are compounded by a 65% downturn in their deUSD reserves due to the collapse.
This event emphasizes the critical importance of transparency in fund management. Immediate repercussions suggest similar vulnerabilities in DeFi systems are under the spotlight for tighter controls.
Comparing deUSD Incident to Terra Luna/UST Collapse
The incident is being compared to the Terra Luna/UST collapse, which caused cascading failures in DeFi protocols. Such patterns of failure underscore the interconnected risks facing these systems.
Expert analysis indicates potential outcomes could involve sweeping regulatory changes and increased due diligence. Historical patterns suggest systemic restructuring may prevent future occurrences. This resembles the Terra Luna/UST collapse due to rapid capital outflows and liquidity issues.
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