deUSD Stablecoin Collapses 98% Amid Elixir Protocol’s Exposure to Stream Finance Crisis
Elixir Protocol's dollar-pegged stablecoin deUSD plummeted 98% to $0.03 after its collateral backing was compromised by Stream Finance's $93 million loss. Blockchain analysts confirm two-thirds of deUSD's reserves were tied to the troubled yield aggregator.
Stream Finance froze withdrawals following the asset manager debacle, leaving Elixir unable to access critical reserves. Despite claiming redemption rights at $1 per token, the protocol faces insolvency risks as legal investigations delay recovery efforts.
The collapse underscores systemic risks in DeFi's interconnected lending ecosystems. Market observers warn of contagion potential as protocols increasingly rely on cross-platform collateralization without fail-safes for third-party failures.
