It once held a $250 million marketcap, and it was a STABLE COIN.
Source: Source
We are no strangers to stablecoin collapses.
In 2022, Luna USDT depegged, and the whole crypto market bled for months!
What actually happened to Elixir?
Three days ago, on 4th November, Stream Finance tweeted that an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.
Yesterday, an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets.
In response, Stream is in the process of engaging Keith Miller and Joseph Cutler of the law firm Perkins Coie LLP, to lead a comprehensive…
— Stream Finance (@StreamDefi) November 4, 2025
A few days before, on 30th October, Stream had announced a massive $400 million proof of assets. Interestingly, the $93 million loss could not be offset by the $400 million reserves.
Happy to announce Stream has signed letters of engagement with various reputable firms, who will be handling our proof of reserves, >400m of our backing is public and transparent on chain,
In the mean time we have shared our books to various curators and are in the process of…
— Stream Finance (@StreamDefi) October 30, 2025
We did cover the Balancer Exploit on 3rd November.
So, the Stream staked stablecoin (XUSD) started collapsing. It sits at $0.11 now, down 90% from $1.
Source: Coingecko
But how can Stream XUSD’s collapse affect deUSD?
- Months before the collapse, Stream Finance borrowed deUSD to maintain peg for its XUSD
- This means Stream Finance and Elixir exchanged 90% of their own stablecoins.
Stream Finance is holding 90% deUSD, and Elixir is holding 90% XUSD.
Stream declared that it suffered $93 million in losses. At the same time, Steam paused XUSD withdrawals.
Eventually, XUSD started collapsing.
Elixir knew that deUSD is underwater, since the XUSD it held had lost 90% of its value. So, Elixir opened a claim portal.
Elixir allowed 80% of the users to deposit deUSD and withdraw USDC.
It was possible by a combined effort of Euler, Morpho, and Compound.
How Elixir is planning to repay Euler, Morpho, and Compound is unknown.
Nevertheless, Elixir announced abandoning deUSD soon after.
The claims are still live. So, if you are affected, don’t waste time and claim USDC right away. Here is the claim portal.
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