Stream confirms insolvency! On-chain stablecoin chain explosion: Elixir abandons DeUSD, USDX depegs to 0.5

Summary: The issuer of xUSD, Stream Finance, has incurred a loss of approximately 93 million USD (. Current statements include that positions were automatically reduced during the 1011 Long Wick Candle, and Balancer was hacked ). According to investigations, Stream Finance's known debts on-chain amount to as much as 280 million USD. Meanwhile, the issuer of deUSD, Elixier, lent approximately 68 million USD to Stream Finance, which, compared to the 121 million USD market capitalization of deUSD, represents 56% of the Collateral becoming bad debt.

( Bloodbath in DeFi: The Truth Behind the Collapse of Stream xUSD: High-Risk Operations Behind the Illusion of Stablecoins )

The previous stablecoin protocol Elixir shuts down deUSD, and the community questions the misappropriation of funds.

Elixir officially stated that Stream holds about 90% of the deUSD supply (, approximately 75 million USD ), and Stream Finance has decided not to repay the debt. As of today, Elixir will close the deUSD product line. Currently, on-chain deUSD holders have all been snapshot, and the official will later open a claim window to ensure that deUSD can be redeemed back to USDC at a 1:1 ratio.

(xUSD 280 million explosion will trigger a chain liquidation of stablecoins? Elixir deUSD has over half of its Collateral lent to Stream Finance )

Currently, the issuance/redemption mechanism of deUSD has been closed, and the official has also withdrawn on-chain liquidity, making it similar to a meme coin. The on-chain quotation of deUSD before the deadline is 0.1 USD.

KOL Lumaogou questioned the official statement that still believes this commitment will be fulfilled at a 1 to 1 ratio, but if Stream does not have enough money, how can they fulfill the commitment?

Another KOL, Cody DeFi, also raised the same question as the author: Originally, the source of deUSD's yield clearly stated it was from government bonds, so why was it suddenly changed to lending to Stream Finance?

The little furry dog speculated that the returns were too low and quietly replaced the agreement. He believes that the standard configuration for stablecoins in the future will be on-chain proof combined with audits, and that stablecoins expected to source returns from arbitrage will need to launch asset proof together with the exchanges.

The founder of CoinEx has a new stablecoin protocol USDX, printing money for real cash.

Another explosive stablecoin project is Stable (, formerly known as USDX). Don't get it wrong; this is not the public chain Stable under Tether, it's just a name change to ride the wave. A survey by Chain News at the end of last year pointed out that the founder Yang Zhou had previously founded the stablecoin protocol Hope.money, and the final result was not very good, so there may be a question mark on some of the experiences the team has gone through. In addition, the protocol's transparency is severely lacking, and there has been no explanation regarding the specific currencies used in operations and the partner exchanges.

(Who is the next Ethena? This article introduces you to two major term arbitrage strategies: the stablecoin protocol USDX and Resolv).

The main reason for this collapse is that Stable has heavily collateralized its printed USDX, borrowing USDT on protocols like Lista and Euler. The borrowing annual interest rate has reached three digits, and there is no intention to repay. Currently, the on-chain price of USDX is 0.4 USD.

The giant whale 0xe454 noticed the decoupling of USDX and spent 800,000 USD to buy the dip. A week ago, he also increased his position by 1.4 million USDX. He has submitted a redemption for USDX, which has not yet been approved after 14 wash hours.

Many users on Twitter recalled Yang Zhou's previous protocol coin, which once thrived with an asset management scale of 7 billion USD, but ended up in failure due to mismanagement.

This article Stream confirms that the assets are insolvent! On-chain stablecoin chain explosion: Elixir abandons deUSD, USDX decouples to 0.5, first appearing in Chain News ABMedia.