The Great DeUSD Debacle: A Tale of Losses and Liquidations 🧙‍♂️💸

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In the heart of the digital realm, the venerable Elixir, a guardian of decentralized finance, has cast aside its synthetic stablecoin, deUSD, in the wake of a calamity befalling the noble Stream Finance. 🐉💸

Elixir, in a proclamation upon the hallowed halls of X, declared that a staggering 80% of the faithful holders of deUSD have been redeemed, triggering a most lamentable depegging to a mere 1.5 cents, as per the sage data of CoinGecko. 📊📉

Stream, in a moment of dire necessity, halted withdrawals on Tuesday, after a most unfortunate disclosure of a $93 million loss, which included a debt of $285 million to various lenders, including a princely sum of $68 million owed to Elixir. 🧱💔

The Catastrophe Unfolds: A Chain Reaction of Woe

Stream, in its desperation, borrowed deUSD to prop up its Staked Stream USD (XUSD) stablecoin, which plummeted to a dismal $0.10 after the protocol’s tragic disclosure. 📈📉

Elixir’s deUSD, born in July 2024, sought to dethrone the mighty USDe of Ethena Labs, boasting a market cap of $150 million before its fateful depeg. 🏛️👑

The Perilous Debt: A Pact With the Devil

Elixir noted that Stream, a most ungrateful debtor, holds 90% of the remaining deUSD supply, worth $75 million. 🧾💰

Yet, Stream, in a most cowardly fashion, refuses to repay or close these positions, compelling Elixir to seek aid from other decentralized lenders, such as Euler, Morpho, and Compound, to honor their promises. 🤝🤝

“We still believe this will be honored 1 for 1,”

quoth Elixir, with the optimism of a man who has just lost his wallet. 🧳💸

Elixir, in a bid to avert disaster, disabled withdrawals to “prevent Stream from liquidating deUSD before repaying their loan.” A most prudent move, if one values chaos over order. ⚖️🌀

Stream Finance, ever the enigma, remained silent when asked for comment, leaving the tale shrouded in mystery. 🕵️‍♂️🌫️

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2025-11-07 08:26