Elixir Retires deUSD After Stream’s $93M Loss, Partners with Euler, Morpho and Compound
DeFi protocol Elixir has permanently retired its synthetic stablecoin deUSD after Stream Finance’s $93 million asset loss triggered a near-total depeg. Stream still holds about 90% of deUSD’s 91.2 million supply and owes Elixir $68 million. Elixir halted deUSD and sdeUSD minting and redemptions, and 80% of holders have claimed USDC compensation so far. The token now trades around $0.026. Elixir is collaborating with Euler (EUL), Morpho (MORPHO) and Compound (COMP) to liquidate Stream’s positions and ensure full repayment, while preventing further withdrawals. Launched in mid-2024 and backed by stETH and sDAI, deUSD was positioned against Ethena’s USDe. Separately, Balancer’s V2 Composable Stable Pools suffered a $128 million exploit draining WETH, osETH and wstETH; StakeWise recovered 5,041 osETH (≈$19.3 million), limiting the net loss to $98 million. Balancer confirms V3 pools are unaffected.
Bearish
The permanent retirement and halting of deUSD minting and redemptions after a $93 million loss underscore a severe loss of confidence in the stablecoin. Stream Finance’s refusal to close positions or fully repay its $68 million debt left 90% of deUSD holders at risk, causing the token to depeg to near-zero and trade around $0.026. Short-term, deUSD is effectively worthless and trading interest will collapse, making the outlook bearish. In the long term, this event damages Elixir’s and synthetic stablecoin credibility, likely deterring traders from similar products and weighing on overall market confidence in DeFi stablecoin projects.