DeFi

Terra

Read

Elixir

<div class="key-points-section"><strong>What to Know:</strong>
 <ul>
  <li>Elixir's deUSD stablecoin was discontinued due to Stream Finance's $93 million loss.</li>
  <li>Caused major disruptions in DeFi markets.</li>
  <li>Widespread impact, affecting other protocols and assets.</li>
 </ul>
</div>
<p>Elixir's deUSD stablecoin crumbled following Stream Finance's $93 million loss, leading to widespread DeFi instability confirmed by on-chain data and official statements as of November 7, 2025.</p>
<p>The collapse highlights significant vulnerabilities in DeFi protocols, impacting tokens like xUSD, deUSD, USDC, and triggering massive market fluctuations.</p>
<p>Elixir’s deUSD stablecoin was ended after Stream Finance's $93 million loss, causing further DeFi disruption.</p>
<p>The collapse highlights systemic vulnerabilities and has led to reassessment across the cryptocurrency market, provoking <a href="https://crypto.news/elixir-retires-deusd-after-streams-93m-loss/" rel="noopener noreferrer nofollow">urgent calls for risk management</a>.</p>
<h2 id="stream-finance-s-93m-loss-shuts-down-deusd">Stream Finance's $93M Loss Shuts Down deUSD</h2>
<div>
 <p><strong>Stream Finance's catastrophic $93 million loss</strong> led to the discontinuation of Elixir's deUSD stablecoin. This event has <strong>triggered significant distress</strong> across the DeFi ecosystem as on-chain data confirms widespread impact.</p>
 <p>The crisis was primarily due to <strong>opaque trades executed by an external Curator</strong> at Stream Finance. Elixir is actively addressing the consequences, having <strong>publicly acknowledged</strong> the scale of the downfall. “Management practices exhibited during this crisis have raised serious questions regarding the integrity of operations.”</p>
</div>
<h2 id="defi-markets-face-turmoil-post-deusd-collapse">DeFi Markets Face Turmoil Post deUSD Collapse</h2>
<div>
 <p>Market effects include <strong>severe liquidity outflows</strong> and <strong>sharp declines</strong> in the value of affected stablecoins. <strong>Elixir’s losses</strong> are compounded by a 65% downturn in their deUSD reserves due to <a href="https://www.odaily.news/en/post/5207371" rel="noopener noreferrer nofollow">the collapse</a>.</p>
 <p>This event emphasizes the <strong>critical importance</strong> of transparency in fund management. <strong>Immediate repercussions</strong> suggest similar vulnerabilities in DeFi systems are under the spotlight for <a href="https://www.ainvest.com/news/defi-house-cards-shaken-synthetic-stablecoin-collapse-sparks-chain-reaction-2511" rel="noopener noreferrer nofollow">tighter controls</a>.</p>
</div>
<h2 id="comparing-deusd-incident-to-terra-luna-ust-collapse">Comparing deUSD Incident to Terra Luna/UST Collapse</h2>
<div>
 <p>The incident is being compared to the <strong>Terra Luna/UST collapse</strong>, which caused cascading failures in DeFi protocols. <strong>Such patterns of failure</strong> underscore the interconnected risks facing these systems.</p>
 <p>Expert analysis indicates potential outcomes could involve <strong>sweeping regulatory changes</strong> and increased due diligence. <strong>Historical patterns</strong> suggest systemic restructuring may prevent future occurrences. <a href="https://www.weex.com/news/detail/stablecoin-yield-vaults-see-largest-weekly-outflow-since-luna-incident-totaling-1-billion-217335" rel="noopener noreferrer nofollow">This resembles the Terra Luna/UST collapse</a> due to rapid capital outflows and liquidity issues.</p>
</div>
<figure class="wp-block-table">
 <table class="has-fixed-layout">
  <tbody>
   <tr>
    <td><em><strong>Disclaimer</strong>: The information on this <a href="https://bitcoininfonews.com/" rel="noopener noreferrer nofollow">website</a> is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.</em></td>
   </tr>
  </tbody>
 </table>
</figure> <a href="https://bitcoininfonews.com/elixir-stablecoin-collapse-stream-finance/" rel="noopener noreferrer nofollow">Read original article on bitcoininfonews.com</a>

Elixir Stablecoin Ends After Stream Finance $93M Loss

Table of Contents

BitcoinInfoNews.Com

Other articles published on Nov 7, 2025

Join our free newsletter for daily crypto updates!