The Elixir team announced the closure of the deUSD project after significant financial troubles at the Stream Finance platform, which held nearly 90% of all issued deUSD stablecoins. Due to a loss of liquidity and an inability to cover debts, this stablecoin lost its peg to the US dollar, with its value plummeting to $0.09.
This is reported by Business • Media
Reasons for Closure and Connection to Stream Finance
The Elixir team announced the launch of deUSD in early August 2025, positioning it as a decentralized synthetic dollar stablecoin with a delta-hedging system to mitigate risks. Structurally, deUSD was linked to another stablecoin—xUSD from Stream Finance—through shared liquidity flows and borrowing operations.
On November 4, news broke of significant financial losses at Stream Finance: an external manager lost about $93 million, prompting the platform to suspend deposits and withdrawals. Stream Finance remained the largest holder of deUSD, holding approximately 90% of its total supply ($75 million) at the time of the shutdown. Since these assets were acquired through borrowing, and the platform was unable to repay them due to difficulties, Elixir was forced to make the decision to close the project.
Thus, the current loss of the deUSD peg is directly related to the collapse of xUSD and the financial troubles of Stream Finance, as well as the negative impact on the demand and supply of stablecoins in the market.
Next Steps for Users and Project Status
Elixir reported that about 80% of redemption requests for deUSD at a 1:1 rate have already been successfully processed for all users except Stream Finance. A snapshot has been taken for the remaining deposits, and owners can apply to receive USDC via the appropriate link. Meanwhile, the issuance and redemption mechanism for deUSD has been permanently halted, and the project will be liquidated.
The team has also begun collaborating with protocols such as Euler, Morpho, Compound, and curators to address the debts of Stream Finance.
“deUSD no longer holds any value, and the stablecoin has been removed from circulation. Please do not buy or invest in deUSD, especially through AMM,” the Elixir team concluded.
Currently, the Stream Finance team has not released any new details regarding the situation.