MEV Capital has announced the removal of the Elixir sdeUSD/USDC trading pair from its Ethereum Morpho USDC vault, leading to bad debt amounting to approximately 3.6% of the vault's total value locked (TVL). The vault no longer contains any Elixir assets, although other markets and parameters remain unchanged. MEV Capital is working with relevant parties to resolve issues affecting Elixir creditors. This development follows Elixir's announcement that its stablecoin deUSD has been retired and holds no value. Elixir has initiated a USDC compensation process for all deUSD and derivative holders, including borrowers and liquidity providers.