The Elixir team announced it was shutting down deUSD due to issues with the Stream Finance platform, which holds about 90% of the asset’s supply.
The stablecoin has lost its dollar peg, and its price has plummeted to $0.09, according to CoinGecko.
What Is deUSD and How Is It Linked to Stream Finance?
Elixir launched deUSD in August 2025, promoting it as a fully decentralized synthetic dollar stablecoin designed to minimize risk through delta hedging.
However, deUSD was structurally tied to xUSD, the stablecoin of the Stream Finance platform, via liquidity flows and lending mechanisms.
On November 4, Stream Finance revealed that an external manager had lost around $93 million. As a result, the platform suspended deposits and withdrawals pending an investigation.
Two days later, Elixir confirmed that Stream Finance controlled nearly 90% of deUSD’s supply, worth about $75 million. The platform had borrowed the collateral used to issue these stablecoins but could not close the position due to financial distress.
The collapse of deUSD is directly tied to xUSD, whose downfall stemmed from Stream Finance’s liquidity issues and pressure from sellers exiting stablecoin positions.
Current Status and Next Steps
Elixir reported it had processed about 80% of deUSD redemption requests at a 1:1 rate, excluding Stream Finance’s holdings.
A snapshot was taken of the remaining deposits, and users can claim equivalent USDC through the provided redemption link. However, the issuance and redemption mechanisms have been suspended, and Elixir confirmed the project will close permanently.
The team plans to work with Euler, Morpho, Compound, and project curators to assist in debt recovery efforts for Stream Finance.
At the time of writing, Stream Finance had not issued further details regarding the incident.
Source: https://coinpaper.com/12196/the-elixir-team-announced-the-closure-of-the-de-usd-project-as-93-million-vanishes
