Elixir Ends deUSD Synthetic Stablecoin
The Elixir protocol has announced the termination of its deUSD synthetic stablecoin. This decision followed a chain reaction sparked by Stream Finance's recent suspension of withdrawals.
Background on Stream Finance Incident
Stream Finance faced significant issues after an external fund manager revealed a loss of $93 million. As a result, Stream Finance currently owes Elixir more than $68 million.
Redemption Process for deUSD Holders
- Elixir has processed approximately 80% of redemption requests from deUSD holders.
- The protocol took a snapshot of the remaining holders, pledging full redemption with USDC at a 1:1 ratio.
Current deUSD Supply and Liquidation Efforts
Stream Finance holds nearly 90% of the deUSD supply, estimated at around $75 million. Elixir is actively collaborating with decentralized lending platforms like Euler, Morpho, and Compound to liquidate Stream's positions and secure funds for deUSD holders.
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Additional Market Highlights
- Altcoins surged broadly, with FIL rising over 100% within 24 hours.
- U.S. stocks ended a three-week winning streak.
- Federal Reserve Governor Milan noted that widespread stablecoin use might heighten the risk of hitting the zero lower bound on interest rates.
- U.S. Senate Democrats proposed a plan aiming to end the government shutdown.
Summary: Elixir has ceased its deUSD stablecoin amid Stream Finance's financial troubles, ensuring a full 1:1 redemption for holders by collaborating with lending platforms to liquidate assets.