Elixir, a decentralized finance (DeFi) platform, has stopped supporting its artificial stablecoin, deUSD.
This determination follows Stream Finance, one in all Elixir’s debtors, reporting a $93 million loss in belongings.
Stream Finance paused buyer withdrawals after revealing that an exterior fund supervisor was answerable for the massive monetary loss.
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The protocol additionally has money owed totaling round $285 million, with about $68 million owed particularly to Elixir. This case affected Elixir’s potential to proceed providing deUSD as deliberate.
In a put up on X shared on November 6, Elixir said that 80% of deUSD holders have already redeemed their tokens. Because of this, the worth of deUSD dropped.
Stream Finance had beforehand borrowed deUSD to help its personal token, Staked Stream USD (XUSD). Nevertheless, after the loss was revealed, XUSD’s value dropped to round $0.10.
Elixir had launched deUSD in July 2024 with the aim of changing into a number one artificial stablecoin.
Presently, Stream Finance is believed to manage practically 90% of the remaining deUSD tokens, valued at about $75 million. Elixir claimed that Stream has not made any selections to repay or shut its mortgage positions.
In response, Elixir is working with different DeFi platforms, reminiscent of Morpho, Compound, and Euler, to make sure customers can nonetheless obtain the complete worth of their holdings.
On November 4, Yields and Extra (YAM) uncovered massive sums linked to its lending and artificial asset actions following Stream Finance’s shutdown. What did they are saying? Learn the complete story.
