The Elixir team announced the decision to close the deUSD stablecoin project due to significant financial difficulties at the Stream Finance platform. This platform held about 90% of the total deUSD supply and was the main debtor to Elixir. After Stream Finance lost control over its liquidity, the deUSD price sharply dropped, losing its peg to the US dollar and falling to $0.09.
This is reported by Finway
Structural Links Between deUSD and Stream Finance
The deUSD stablecoin was launched by the Elixir team in August 2025 as a decentralized synthetic dollar stablecoin that uses delta hedging to mitigate risks. The project architecture involved close integration with xUSD — the Stream Finance stablecoin — through liquidity and lending mechanisms.
On November 4, 2025, the Stream Finance team reported a loss of approximately $93 million due to an external manager, after which the acceptance of deposits and withdrawals was suspended during the investigation. Elixir confirmed that Stream Finance owned about 90% of the deUSD issuance (equivalent to $75 million), but due to financial issues, the platform was unable to close its debt positions. The de-pegging of deUSD was a direct result of the liquidity crisis at Stream Finance, and the decline of xUSD exacerbated the negative effect on the stablecoin market.
Project Status and Next Steps
Elixir reported that it has already completed about 80% of the deUSD buyback at a 1:1 rate for holders, excluding Stream Finance. For other users, a snapshot of balances was taken, and they will be able to receive an equivalent amount in USDC after submitting a request. The issuance and redemption of deUSD have been completely halted, and the project is being permanently closed.
Additionally, the Elixir team stated its intention to collaborate with the Euler, Morpho, Compound protocols, and other curators to settle the debt of Stream Finance.
“deUSD no longer holds any value, and the stablecoin has been removed from circulation. Please do not buy or invest in deUSD, especially through AMM,” the Elixir team summarized.
As of the time of this news preparation, the Stream Finance team had not released any new details regarding the situation.