Elixir has announced the discontinuation of its stablecoin deUSD, initiating a 'sunset phase' from November 2025. The decision comes after a $93 million bad debt incident with partner Stream Finance, which severely impacted deUSD's collateral value and caused it to lose its peg. Elixir will transfer governance and remaining assets to the community, ceasing its operation of the protocol. A two-track redemption plan has been introduced, allowing most users to redeem deUSD for USDC at a 1:1 ratio, while deeper liquidity providers are expected to incur significant losses. Control of the protocol has been handed over to the DAO, highlighting challenges in decentralization during financial crises.