Elixir announced the termination of the deUSD synthetic stablecoin, promising 100% redemption

Elixir Protocol has announced the termination of its deUSD synthetic stablecoin, a move triggered by the chain reaction following Stream Finance's suspension of withdrawals earlier this week.

Stream Finance is in trouble due to the disclosure of a $93 million loss by an external fund manager and currently owes Elixir over $68 million. Elixir has processed about 80% of the redemption requests from deUSD holders and has taken a snapshot of the remaining holders, promising to fully redeem them at a 1:1 ratio with USDC. Currently, Stream Finance holds about 90% of the deUSD supply (approximately $75 million), and Elixir is working with decentralized lending platforms such as Euler, Morpho, and Compound to liquidate its Stream positions and allocate funds to deUSD holders.