The Elixir team has officially announced the shutdown of its deUSD stablecoin following financial difficulties at Stream Finance, the platform holding nearly 90% of deUSD’s circulating supply. The stablecoin recently lost its peg to the U.S. dollar, dropping to $0.09, according to CoinMarketCap.
What is deUSD and Its Connection to Stream Finance?
Launched in August 2025, deUSD was designed as a fully decentralized synthetic dollar stablecoin, using delta-hedging to minimize risk. Structurally, deUSD is tied to xUSD, the stablecoin of Stream Finance, through liquidity flows and lending mechanisms.
On November 4, Stream Finance reported that its external manager lost approximately $93 million, leading the platform to pause deposits and withdrawals during the investigation. By November 6, Elixir stated that Stream Finance held about $75 million, or 90% of deUSD’s supply, and was unable to close positions due to financial constraints.
The current depeg of deUSD is directly linked to the collapse of xUSD, which itself resulted from Stream Finance’s financial difficulties and selling pressure on stablecoins.
Current Status and Next Steps
Elixir has successfully processed roughly 80% of redemption requests from holders at a 1:1 rate, excluding Stream Finance. For remaining deposits, a snapshot has been taken, allowing users to claim an equivalent amount in USDC via a redemption link. The issuance and redemption mechanism for deUSD has been halted, and the project is being officially closed.
Elixir will also collaborate with Euler, Morpho, Compound, and other curators to help recover Stream Finance’s debt.
The team stressed:
“deUSD no longer holds any value and has been removed from circulation. Please do not purchase or invest in deUSD, especially via AMMs.”
As of the announcement, Stream Finance has not provided additional details about the ongoing situation.
