DeFi Platform Elixir Halts Support for deUSD After Stream Finance’s $93M Loss

Decentralized finance liquidity supplier Elixir has suspended help for its artificial stablecoin deUSD following the fallout from Stream Finance’s $93 million loss earlier this week.

Elixir announced on X that it has already processed redemptions for 80% of all deUSD holders, which led the token to depeg to round $0.015, based on CoinGecko information.

The transfer comes after Stream Finance froze withdrawals on Tuesday, revealing a serious hit to its steadiness sheet and $285 million in debt, together with $68 million owed to Elixir.

Stream’s XUSD Crashes 90% as deUSD Exposure Triggers Stablecoin Contagion

Stream had borrowed deUSD to again its personal Staked Stream USD (XUSD) stablecoin, which plunged to $0.10 following the disclosure.

Elixir’s deUSD, launched in July 2024, was seen as a challenger to Ethena’s USDe, with a market cap of about $150 million earlier than the crash.

Elixir mentioned Stream holds round 90% of deUSD’s remaining provide, price roughly $75 million, however has refused to repay or shut its positions.

The firm is now coordinating with different DeFi protocols like Euler, Morpho, and Compound to completely compensate affected holders.

“We nonetheless consider this shall be honored 1 for 1,” Elixir acknowledged, including that it disabled withdrawals to forestall Stream from liquidating deUSD earlier than settling its debt.

Elixir has labored tirelessly over the earlier 48 hours and has efficiently processed redemptions of 80% of all deUSD holders so far (not together with Stream).

As it stands now, Stream holds roughly 90% of the deUSD provide (~$75m), whereas Elixir holds an analogous proportion of its…

— Elixir (@elixir) November 6, 2025

Notably, on-chain analysts described the drop in XUSD as a disaster of confidence fairly than a technical failure, noting that a lot of the buying and selling originated from Arbitrum and that no sensible contract exploit had been recognized.

Social media discussions intensified issues in regards to the mission’s reserves, with some customers alleging a $170 million asset base in opposition to $530 million in loans, suggesting heavy leverage.

Stream, based in early 2024, grew quickly on a promise of capital-efficient DeFi methods that blended conventional market techniques like hedged market making and yield farming.

However, its dependence on exterior fund managers, meant to deal with overflow past inside capability, has now change into the main focus of scrutiny, elevating questions on transparency and counterparty threat in its mannequin.

Balancer Suffers $128M Exploit, Recovers $19M Amid On-Chain Chase

As reported, DeFi protocol Balancer suffered a massive breach on Monday targeting its V2 Composable Stable Pools, with estimated losses exceeding $128 million throughout a number of chains, based on PeckShieldAlert.

The attacker exploited authorization and callback flaws to empty funds from interconnected swimming pools in a matter of minutes.

Analysts at Nansen and Cyvers Alerts tracked suspicious transfers of WETH, osETH, and wstETH, later figuring out laundering exercise by means of Tornado Cash.

In a uncommon constructive twist, on-chain analyst EmberCN reported that StakeWise efficiently recovered 5,041 osETH (price $19.3 million) through a contract name, decreasing whole stolen belongings to round $98 million.

Over half of the stolen funds have since been swapped to Ethereum, intensifying efforts to hint them.

Balancer confirmed the difficulty was restricted to V2 swimming pools, assuring customers that V3 and different swimming pools stay unaffected.

Meanwhile, one dormant whale withdrew $6.5 million following the hack, underscoring shaken investor confidence.

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