The post Elixir Winds Down deUSD Following Stream Finance Fallout appeared on BitcoinEthereumNews.com. Elixir, a decentralized finance liquidity provider, has announced that it will wind down its deUSD synthetic dollar stablecoin. The decision follows Stream Finance’s disclosure of a major loss that triggered ripple effects across the DeFi ecosystem. Sponsored Sponsored What Happened Between Elixir and Stream Finance? Earlier this week, Stream Finance announced a significant loss of around $93 million in assets managed by an external fund manager. “Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets,” Stream posted on November 4. Following the incident, the platform suspended all withdrawals and deposits, stating that any pending deposits would not be processed until further notice. The company also stated that it is withdrawing all remaining liquid assets, a process it anticipates completing in the near term. But why did this impact Elixir’s synthetic stablecoin? According to Nansen, “Elixir parked 65% of deUSD’s collateral with Stream. Stream then lost $93 million using its own stablecoin (xUSD) as collateral. When xUSD dropped 77%, deUSD’s entire backing basically vanished. That set off a chain reaction: Stream froze withdrawals → redemptions halted → panic selling hit Curve. $30 million+ dumped onchain as holders raced to exit.” Elixir responded by sunsetting its synthetic stablecoin. In a post on X (formerly Twitter), the network highlighted that it had processed redemptions for 80% of all deUSD holders. Sponsored Sponsored “All remaining holders of deUSD and sdeUSD will be able to redeem for a dollar,” the team wrote. Furthermore, the network revealed that it had taken a snapshot of all remaining holder balances. It also launched a claim page for users to redeem their assets in USDC. “deUSD holds no value and the stablecoin has been sunset. Please do not buy or make investments into deUSD, including through AMMs,” Elixir added.… The post Elixir Winds Down deUSD Following Stream Finance Fallout appeared on BitcoinEthereumNews.com. Elixir, a decentralized finance liquidity provider, has announced that it will wind down its deUSD synthetic dollar stablecoin. The decision follows Stream Finance’s disclosure of a major loss that triggered ripple effects across the DeFi ecosystem. Sponsored Sponsored What Happened Between Elixir and Stream Finance? Earlier this week, Stream Finance announced a significant loss of around $93 million in assets managed by an external fund manager. “Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets,” Stream posted on November 4. Following the incident, the platform suspended all withdrawals and deposits, stating that any pending deposits would not be processed until further notice. The company also stated that it is withdrawing all remaining liquid assets, a process it anticipates completing in the near term. But why did this impact Elixir’s synthetic stablecoin? According to Nansen, “Elixir parked 65% of deUSD’s collateral with Stream. Stream then lost $93 million using its own stablecoin (xUSD) as collateral. When xUSD dropped 77%, deUSD’s entire backing basically vanished. That set off a chain reaction: Stream froze withdrawals → redemptions halted → panic selling hit Curve. $30 million+ dumped onchain as holders raced to exit.” Elixir responded by sunsetting its synthetic stablecoin. In a post on X (formerly Twitter), the network highlighted that it had processed redemptions for 80% of all deUSD holders. Sponsored Sponsored “All remaining holders of deUSD and sdeUSD will be able to redeem for a dollar,” the team wrote. Furthermore, the network revealed that it had taken a snapshot of all remaining holder balances. It also launched a claim page for users to redeem their assets in USDC. “deUSD holds no value and the stablecoin has been sunset. Please do not buy or make investments into deUSD, including through AMMs,” Elixir added.…