TRENDING:
Trade War
XAU/USD
Silver
EUR/USD
GBP/USD
USD/CAD
AUD/USD
Sponsored by
Login
|

Elixir deUSD stablecoin collapse stream finance loss 2025

Elixir deUSD stablecoin collapse stream finance loss 2025
Jacob LazurekJacob LazurekCoinpaprika

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

Jacob Lazurek

Coinpaprika

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

More from Jacob Lazurek
Share:

Editor's Picks

Solana Price Forecast: Mixed market sentiment caps recovery

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.

DeFi platforms Ethena and Polygon eye recovery after sustained downturn

DeFi platforms Ethena and Polygon eye recovery after sustained downturn

Ethena (ENA) is trading around $0.116 on Friday, posting a 6% rise earlier before tapering some of those gains over the past 24 hours. The move comes as ENA investors are down by an average of about 70%.

Aave Labs proposes framework to push all revenue to DAO

Aave Labs proposes framework to push all revenue to DAO

Aave Labs (AAVE) has introduced a new proposal, the Aave Will Win Framework, designed to better align incentives across its ecosystem. The proposal suggests channeling all revenue generated from Aave-branded products directly into the treasury managed by the Aave DAO.

Pi Network Price Forecast: PI bulls resurface at a crucial support level

Pi Network Price Forecast: PI bulls resurface at a crucial support level

Pi Network (PI) is up almost 1% at press time on Friday, extending the 2% gains from the previous day. Renewed buying pressure, evidenced by increased withdrawals from exchanges supporting the PI token, and reduced outflows from the Pi Foundation, adds tailwinds.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: The worst may be behind us

Bitcoin: The worst may be behind us

Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.