According to Wu, Nansen reported that deUSD experienced a big dump of 95% within two days, with the current trading price at approximately $0.05, making it one of the fastest “death speed” stablecoins after UST. The incident originated from Elixir, which entrusted 65% of the deUSD Collateral to Stream Finance, while Stream used its own stablecoin xUSD to cover a loss of $93 million. When xUSD fell by 77%, the supporting assets of deUSD nearly evaporated, triggering a chain reaction: Stream froze withdrawals, redemptions were suspended, and there was a panic dumping on Curve, with over $30 million being sold off on-chain. Elixir stated that it has completed 80% of the redemptions, but the project will cease operations. Nansen pointed out that when 65% of the assets are concentrated in a single counterparty, “Decentralization” is merely a hollow talk.
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