Prix de Elixir deUSDDEUSD

I was too late re xUSD. But at least I warned you about $deUSD before it became real.

⚡️ UPDATE: Elixir is sunsetting its synthetic stablecoin deUSD after Stream Finance suffered a ~$93M loss, with about $75M of deUSD trapped in Stream’s fallout.

Unpacking the deUSD/xUSD Depeg: Anatomy of a Stablecoin Breakdown Background Mechanism: Stream/xUSD operates through recursive lending structures, while Elixir/deUSD is based on stETH/sDAI collateralization combined with futures hedging (long spot/short perpetual). The two systems are interlinked, using each other’s assets as collateral in a closed-loop arrangement. Approximately 40% of the total supply is backed by external capital, with the remainder generated through internal lending loops and hedging yields (~15%+ APY). Reserve verification is not available in real time and relies on Morpho’s exclusive pools and Balancer liquidity. Stream is currently under legal review by Perkins Coie LLP following a reported $93 million loss disclosed by an external fund manager. The protocol has suspended deposits and withdrawals while securing remaining assets. This has increased uncertainty for holders of xUSD, xBTC, and xETH, as these tokens are widely used as collateral in lending markets and may pose contagion risks if their valuations decline further. #deUSD #xUSD #Stream #Elixir #stablecoin #depeg

2. Stream Leverages to Mint deUSD (Cross-Protocol Mutual Minting): Sub-Step 2.1: Swap USDC for USDT on DEXes. Sub-Step 2.2: Send USDT to Elixir's deUSD Minter; mints 1:1 deUSD, inflating supply while reserves rise by USDT. Sub-Step 2.3: Bridge deUSD to L2s. Sub-Step 2.4: In

4. Infinite Closed-Loop Rotation (Stream Borrowing + Repetition): Sub-Step 4.1: Collateralize new xUSD in Morpho. Sub-Step 4.2: Borrowed USDC restarts cycle (USDC → USDT → deUSD → etc.). Sub-Step 4.3: Each iteration boosts leverage; TVL inflates (DeFiLlama data: $40M to $520M