The collapse of Stream Finance has forced the DeFi protocol Elixir to discontinue its deUSD stablecoin. Redemptions for 80% of holders have been processed, with a snapshot taken to facilitate future redemptions in USDC via an upcoming claims portal. Elixir acknowledges Stream’s suspension of withdrawals following a $93 million loss and the subsequent collapse of its xUSD stablecoin, which has seen its value plummet below $0.20, triggering wider market contagion. The project disabled mint and redeem functions to prevent further liquidation risk. Elixir’s team emphasizes that they are working with lenders Euler, Morpho, and Compound to unwind positions and recover funds from Stream. The claims portal will facilitate the redemption of remaining deUSD balances in USDC. This event underscores the fragility of DeFi lending systems reliant on cross-protocol collateralization.