Elixir deUSD stablecoin collapse stream finance loss 2025

Jacob Lazurek Coinpaprika

Elixir deUSD stablecoin collapses in 2025 due to Stream Finance $93 million loss and default.

Elixir halted redemptions for its deUSD stablecoin after borrower Stream Finance defaulted. Stream reported $93 million in trading losses. Outstanding debt reached $68 million, triggering the collapse.

Timeline of the failure

Stream used deUSD as collateral for leveraged bets on Elixir's lending platform. Sharp asset price drops led to mass liquidations. Elixir's reserves fell short for 1:1 peg maintenance. deUSD traded down to $0.015 within hours.

How deUSD worked

deUSD functioned as an over-collateralized synthetic dollar in Decentralized Finance (DeFi). Users deposited assets to mint deUSD; borrowers accessed liquidity. Elixir managed the protocol without centralized reserves. Lenders now organize recovery through on-chain governance and Discord.

Immediate market effects

Total Value Locked (TVL) in Elixir dropped over $200 million. Broader stablecoin confidence dipped temporarily. Elixir announced: "Coordination with affected parties is underway to address shortfalls." No timeline for resolutions.

Author

Jacob Lazurek

Coinpaprika

In the dynamic world of technology and cryptocurrencies, my career trajectory has been deeply rooted in continuous exploration and effective communication.

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