Elixir Shuts Down deUSD, Transfers Protocol to Community

In accordance with BlockTempo, Elixir has announced the shutdown of its stablecoin deUSD, which will enter a 'sunset phase' starting November 2025. The team will no longer operate the protocol and will transfer governance and remaining assets to the community. The decision follows a $93 million bad debt incident involving partner Stream Finance, which triggered a sharp decline in deUSD's collateral value and led to a loss of peg. Elixir has initiated a two-track redemption plan, allowing most users to exchange deUSD for USDC 1:1, while deeper liquidity providers face significant losses. The team has also handed over protocol control to the DAO, raising questions about the practicality of decentralization in crisis scenarios.