Following a devastating $93 million loss by Stream Finance, Elixir has suspended support for its synthetic stablecoin, deUSD. This move comes as the DeFi space grapples with significant market turmoil and liquidity concerns. DeUSD’s value plummeted to nearly $0.015 following the collapse of XUSD, which was linked to Stream Finance’s debt issues and withdrawals. Elixir has initiated a redemption process for affected holders, while other DeFi protocols like Euler, Morpho, and Compound are collaborating with Elixir to provide compensation to those impacted. 80% of deUSD holders have had redemptions processed. Stream Finance, which relied on deUSD to support its Staked Stream USD (XUSD) stablecoin, experienced a significant debt crisis leading to the collapse of XUSD, now trading at $0.10. Meanwhile, Balancer faced a security breach resulting in over $128 million worth of assets lost. The incident highlights vulnerabilities within DeFi ecosystems and underscores the need for increased transparency and risk mitigation. 80% of deUSD holders have had redemptions processed.