Elixir's deUSD stablecoin has been discontinued following Stream Finance's significant $93 million loss, leading to widespread disruption in decentralized finance (DeFi) markets. On-chain data and official statements confirmed the extensive impact as of November 7, 2025.
The collapse of deUSD highlights considerable vulnerabilities within DeFi protocols, affecting various tokens including xUSD, deUSD, and USDC, and triggering substantial market fluctuations.
Stream Finance's $93 Million Loss Triggers deUSD Discontinuation
Stream Finance's catastrophic loss of $93 million directly led to the discontinuation of Elixir's deUSD stablecoin. This event has caused significant distress across the DeFi ecosystem, with on-chain data confirming the widespread ramifications.
The crisis was primarily attributed to opaque trades executed by an external Curator at Stream Finance. Elixir is actively addressing the consequences and has publicly acknowledged the severity of the situation, stating that management practices exhibited during this crisis have raised serious questions regarding the integrity of operations.
DeFi Markets Face Turmoil After deUSD Collapse
The market effects have included severe liquidity outflows and sharp declines in the value of affected stablecoins. Elixir's losses are compounded by a 65% downturn in their deUSD reserves, a direct consequence of the collapse.
This incident underscores the critical importance of transparency in fund management. The immediate repercussions suggest that similar vulnerabilities in DeFi systems are now under scrutiny for tighter controls.
Comparison to Terra Luna/UST Collapse
The deUSD incident is drawing comparisons to the Terra Luna/UST collapse, which previously caused cascading failures across DeFi protocols. These recurring patterns of failure emphasize the interconnected risks inherent in these systems.
Expert analysis suggests that potential outcomes could include sweeping regulatory changes and increased due diligence requirements. Historical patterns indicate that systemic restructuring may be necessary to prevent future occurrences of such magnitude. The current situation resembles the Terra Luna/UST collapse due to rapid capital outflows and significant liquidity issues.