It was once a stablecoin with a market capitalization of $250 million.
Source: Source
We are no strangers to the collapse of stablecoins.
In 2022, Luna USDT was depegged and the entire crypto market bled for months.
What actually happened to Elixir?
Three days ago, on November 4, Stream Finance tweeted that the external fund manager that oversees the Stream Fund had disclosed approximately $93 million in losses on Stream Fund assets.
Yesterday, the external fund manager that oversees the Stream Fund disclosed a loss of approximately $93 million in Stream Fund assets.
In response, Stream is collaborating with law firm Perkins Coie LLP’s Keith Miller and Joseph Cutler to lead a comprehensive plan.
— Stream Finance (@StreamDefi) November 4, 2025
A few days earlier, on October 30th, Stream had announced a massive $400 million proof of assets. Interestingly, the $93 million loss could not be offset by $400 million in reserves.
We are pleased to announce that Stream has signed agreements with various reputable companies. We will be dealing with our reserves certification. More than 400 million of our grants are public and transparent on chain.
In the meantime, we have shared the book with various curators and are currently preparing it…
— Stream Finance (@StreamDefi) October 30, 2025
We covered balancer exploits on November 3rd.
As such, the Streamstake stablecoin (XUSD) began to collapse. It currently stands at $0.11, down 90% from $1.
Source: Coin Gecko
But how will the collapse of Stream XUSD affect deUSD?
- Months before the collapse, Stream Finance borrowed deUSD to maintain its peg to XUSD.
- This means that Stream Finance and Elixir have exchanged 90% of their stablecoins.
Stream Finance holds 90% of deUSD and Elixir holds 90% of XUSD.
Stream announced it had suffered a loss of $93 million. At the same time, Steam has suspended XUSD withdrawals.
Eventually, XUSD started to collapse.
Elixir knew that deUSD was underwater as the XUSD it held lost 90% of its value. So Elixir launched a billing portal.
On Elixir, 80% of users allowed deUSD deposits and USDC withdrawals.
It was made possible by the joint efforts of Euler, Morpho, and Compound.
It is unclear how Elixir plans to repay Euler, Morpho and Compound.
Nevertheless, Elixir announced the abandonment of deUSD shortly thereafter.
The claim is still alive. So, if you are affected, don’t waste your time and claim your USDC immediately. This is the billing portal.
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