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ARTICLE · 22 JANUARY 2026

Elixir Shuts Down Its Stablecoin After Stream Finance's $93M Collapse

Patterson Law Firm
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In early November 2025, the decentralized finance (DeFi) ecosystem experienced one of its most significant shocks in months —a chain of events that culminated in Elixir's decision to shut down...

United StatesFinance and Banking
Michael Haeberle
Michael Haeberle

The recent $93M collapse of Stream Finance and the subsequent shutdown of Elixir's deUSD stablecoin have sent shockwaves through the DeFi ecosystem. For investors and businesses facing significant losses, consulting with an experienced Business Litigation Lawyer in Chicago is essential to understanding liability, recovery strategies, and the evolving regulatory landscape in Illinois.

In early November 2025, the decentralized finance (DeFi) ecosystem experienced one of its most significant shocks in months —a chain of events that culminated in Elixir's decision to shut down its synthetic stablecoin deUSD after a massive loss at Stream Finance, a protocol with deep ties to DeFi lending and yield strategies. While the term "stablecoin collapse" might feel like old news to experienced observers, the specifics of this breakdown highlight ongoing structural risks in decentralized markets and offer important lessons about collateral, counterparty exposure, and design

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