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One bad borrow just nuked a $150M stablecoin. Elixir pulled the plug on deUSD Thursday after Stream Finance—its biggest debtor—admitted a $93 million off-chain wipeout, sending the synthetic dollar to 1.5 cents.
“Stream owes us $68M and holds 90% of deUSD ($75M),” Elixir posted on X. “We processed 80% redemptions at $1 before the crash—claims portal drops today for the rest in USDC.” Mint/redeem gates slammed shut; deUSD heads to the graveyard.
What broke?
– Stream’s fund manager YOLO’d leverage on volatile vaults.
– No code hack—just human greed + Balancer fallout ($128M separate exploit).
– XUSD (Stream’s peg) cratered to $0.10; $1B stablecoin flight across DeFi.
Elixir’s TVL plunged 27% to $110M (DeFiLlama). “We’re the only creditor with full $1 rights—working Euler/Morpho to liquidate Stream orderly,” devs vowed. PeckShield: “Contagion contained; no rehypothecation bomb.”
Lessons?
– Synthetic stables live or die by counterparty trust.
– USDe (Ethena) shrugs: “We don’t lend to randos.”
– CFTC circles: unregistered lending = future ban?
From Ethena rival to cautionary tale in 48hrs—deUSD’s 1.5¢ tombstone screams “audit your borrows.” Claim portal: elixir.finance/claims. HODLers saved; yield chasers rekt.
