Ethena’s synthetic dollar USDe has shrunk from about $14.7Bn to roughly $6.4Bn in just over two months after the October 10 crypto crash. That’s an $8.3Bn exit as traders unwind risk and move toward simpler, fiat-backed stablecoins. This all happened during the biggest liquidation event in crypto history, when more than $19 billion in positions vanished, and the market wiped out around $1.3Tn in value. What Is USDe, and Why Did So Much Money Leave? USDe is a “synthetic stablecoin,” which means it does n ...

Core Insights - Obex has raised $37 million to support the development of yield-generating stablecoins, backed by Framework Ventures, LayerZero, and the Sky ecosystem [1] - The initiative aims to invest in projects that implement real-world asset-backed strategies on-chain, enhancing risk controls and underwriting practices in the sector [1] Group 1: Investment and Market Potential - Obex will allocate capital from Sky, previously known as MakerDAO, which manages stablecoins with a combined market cap of $9 billion [2] - The market for stablecoins is projected to reach $1 trillion, with yield-bearing stablecoins expected to grow even faster [2] Group 2: Characteristics of Stablecoins - Stablecoins are cryptocurrencies designed to maintain a stable price, often backed by fiat money and government bonds, and are increasingly used for cross-border payments [3] - Emerging synthetic stablecoins, like Ethena's USDE, aim to provide competitive yields through backend investment strategies [3] Group 3: Risks and Oversight - Some backing strategies for synthetic stablecoins have proven risky, leading to a loss of price stability, as seen with USDX and deUSD during a recent DeFi contagion [4] - Obex aims to mitigate these risks by emphasizing rigorous oversight and robust technical foundations [5] Group 4: Focus Areas and Support - The initiative will concentrate on stablecoins backed by high-quality real-world collateral, including compute credits, energy assets, and loans to large fintechs [5] - Obex will run a 12-week program for early-stage teams, providing capital, technical resources, and access to Sky's infrastructure [6]

Core Insights - Elixir has decided to wind down its deUSD synthetic dollar stablecoin following a significant loss disclosed by Stream Finance, which has caused ripple effects across the DeFi ecosystem [1][7]. Incident Overview - Stream Finance reported a loss of approximately $93 million in assets managed by an external fund manager, leading to the suspension of all withdrawals and deposits [2][3]. - Elixir had parked 65% of deUSD's collateral with Stream, which lost $93 million using its own stablecoin (xUSD) as collateral, resulting in a 77% drop in xUSD and effectively nullifying deUSD's backing [3][6]. Market Impact - The value of deUSD collapsed by over 97% within 24 hours, trading around $0.025 [5]. - Panic selling ensued, with over $30 million dumped on-chain as holders rushed to exit [3]. Redemption Process - Elixir announced that all remaining holders of deUSD and sdeUSD would be able to redeem their assets for a dollar, and a claim page was launched for users to redeem their assets in USDC [4][6]. - The protocol has taken a snapshot of all remaining holder balances and expects all claims to be honored on a 1:1 basis [6]. Broader Implications - The incident underscores the interconnectedness of DeFi systems, highlighting how losses in one protocol can significantly impact others, and raises ongoing discussions about collateral design, transparency, and risk management in decentralized finance [7].

⚡️ UPDATE: Elixir is sunsetting its synthetic stablecoin deUSD after Stream Finance suffered a ~$93M loss, with about $75M of deUSD trapped in Stream’s fallout. https://t.co/7wC9rvr7b0 ...

Core Insights - Elixir has suspended support for its synthetic stablecoin deUSD due to the fallout from Stream Finance's $93 million loss, leading to a significant depeg of deUSD to approximately $0.015 [1][3][9] Group 1: Elixir and deUSD - Elixir has processed redemptions for 80% of all deUSD holders, resulting in a depeg of the token [3] - The market cap of deUSD was around $150 million before the crash, and Stream Finance holds about 90% of the remaining supply, valued at roughly $75 million [4] - Elixir is coordinating with other DeFi protocols to compensate affected holders and has disabled withdrawals to prevent liquidation of deUSD [5] Group 2: Stream Finance - Stream Finance revealed a major hit to its balance sheet with $285 million in debt, including $68 million owed to Elixir [3][9] - The XUSD stablecoin, backed by deUSD, crashed 90% to $0.10 following the disclosure of Stream's financial issues [4] - Stream's rapid growth was based on capital-efficient DeFi strategies, but its reliance on external fund managers has raised concerns about transparency and counterparty risk [7] Group 3: Market Reactions - Analysts described the drop in XUSD as a crisis of confidence rather than a technical failure, with no smart contract exploit identified [6] - Social media discussions have intensified concerns regarding Stream's reserves, suggesting a heavily leveraged position with $170 million in assets against $530 million in loans [6] - Balancer also faced a significant exploit, losing over $128 million but managing to recover $19 million [8][9]

Core Insights - Stream Finance's external fund manager lost approximately $93 million in user assets, leading to a 77% crash in the price of its stablecoin, Staked Stream USD (xUSD) [1][2] - The protocol has suspended all withdrawals and deposits while engaging a law firm to investigate the incident [1][2] - The loss has exposed vulnerabilities in the interconnected lending ecosystem of DeFi [1] Financial Impact - The price of xUSD plummeted to approximately $0.50 shortly after the loss, and as of the latest data, it is trading at $0.26, marking a 77% drop in 24 hours [2] - Direct debt exposure across multiple lending protocols is estimated at nearly $285 million, with significant exposure from various curators [3] Market Dynamics - The incident raises concerns about the settlement process between xUSD/xBTC/xETH holders and lenders, as these tokens were used as collateral in DeFi lending markets [4] - Indirect exposure includes stablecoins like Elixir's deUSD, which lent $68 million USDC to Stream, representing 65% of its backing [4] Risk Factors - The collapse is attributed to a leverage ratio exceeding 4x, with borrowing reaching $530 million against supporting assets of only $170 million [5] - The use of rehypothecation chains, where collateral is used multiple times across different platforms, has created a cascading effect in the market [5]

Core Insights - Stream Finance suspended all withdrawals and deposits on November 3 after an external fund manager reported a loss of approximately $93 million in company assets [1][2] - The company is in the process of withdrawing all liquid assets but has not provided a timeline for resuming operations or identifying the responsible fund manager [2] Growth and Yield Concerns - Stream's xUSD vault experienced rapid growth from $40 million to nearly $400 million, maintaining a flat 15% yield, which raises suspicions about the sustainability of returns [3] - Onchain yields typically decrease with more depositors, suggesting that returns may have been artificially set or averaged from offchain strategies [3] Transparency and Risk - Stream Finance lacks a comprehensive Proof of Reserve or transparency dashboard, relying on a Debank bundle for onchain positions [4] - Following the announcement, xUSD depegged by 25% from its target price before partially recovering [4] Contagion Risks in DeFi - Approximately $284.96 million in outstanding loans are secured by Stream's xUSD, xBTC, and xETH collateral across various DeFi lending platforms [5] - Users deposit Bitcoin, Ethereum, and dollars to mint derivative tokens used as collateral on other platforms [5] Specific Exposure Cases - Elixir Network's deUSD stablecoin has $68 million in USDC lent to Stream against xUSD collateral, representing 65% of deUSD's total backing [6] - Elixir claims full redemption rights but cannot process payouts until creditor priority is determined, putting it at risk if Stream cannot recover funds [6] Major Exposures - The largest exposed curator is TelosC with $123.64 million in loans secured by Stream assets, followed by Elixir at $68 million and MEV Capital at $25.42 million [7] - MEV Capital's xUSD market on Arbitrum has fallen below liquidation thresholds, with borrow rates reaching 88% at 100% utilization [7]

Fastest Growing RWAs (30d TVL Growth) - USDCV (Societe Generale) is among the fastest growing RWAs [1] - USCC (Superstate) shows significant growth [1] - MTBILL (Midas) demonstrates rapid growth [1] - XAUT (Tether) experiences notable growth [1] - USDG (Global Dollar Network) exhibits fast growth [1] - cUSD (Cap) is among the fastest growing RWAs [1] - deUSD (Elixir Protocol) shows significant growth [1] - Reserve Index (Reserve) demonstrates rapid growth [1] - JAAA (Centrifuge) experiences notable growth [1] - MF-ONE (Midas) exhibits fast growth [1] - thBILL (Theo) is among the fastest growing RWAs [1] - RLUSD (Ripple) shows significant growth [1] - PAXG (Paxos) demonstrates rapid growth [1] - USTB (Superstate) experiences notable growth [1] - WTGXX (WisdomTree) exhibits fast growth [1]

Real World Assets (RWA) Growth - Token Terminal identifies fastest growing RWAs based on 30-day TVL (Total Value Locked) growth in percentage [1] - The list includes various RWAs such as USDCV, cUSD, USCC, MTBILL, XAUT, deUSD, USDG, Reserve Index, MF-ONE, JAAA, thBILL, PAXG, PYUSD, FDIT, and RLUSD [1] Specific RWA Projects - Societe Generale is associated with USDCV [1] - Cap is associated with cUSD [1] - Superstate is associated with USCC [1] - Midas is associated with MTBILL and MF-ONE [1] - Tether is associated with XAUT [1] - Elixir Protocol is associated with deUSD [1] - Global Dollar Network is associated with USDG [1] - Reserve is associated with Reserve Index [1] - Centrifuge is associated with JAAA [1] - Theo is associated with thBILL [1] - Paxos is associated with PAXG [1] - PayPal is associated with PYUSD [1] - Fidelity is associated with FDIT [1] - Ripple is associated with RLUSD [1]

RWAs Market Growth - Token Terminal 数据显示，基于 30 天 TVL 增长百分比，USDG 是增长最快的 RWA 之一 [1] - 其他快速增长的 RWA 包括 USDCV, cUSD, USCC, MTBILL, XAUT, deUSD, Reserve Index, MF-ONE, JAAA, thBILL, PAXG, PYUSD [1] Global Dollar Network (USDG) - USDG 的未偿供应量接近 10 亿美元 [1]