MEV Capital suffered a severe blow due to involvement in deUSD leverage strategies, with assets shrinking from $1.5 billion to $300 million, a decline of nearly 80%. This DeFi crisis was caused by complex lending relationships among yield treasury tokens, leading to multiple project failures and massive capital evaporation. The industry is working to shift towards more stable asset structures, but risks still remain.

MEV Capital has updated the operational progress of the Morpho USDC vault on the X platform, having removed the Elixir sdeUSD/USDC trading pair, resulting in approximately 3.6% bad debt for the vault. The vault no longer holds Elixir assets, and MEV Capital is working with various parties to address the Elixir creditor issues. Elixir's deUSD has been retired, and the USDC compensation process has been initiated.

The Curve community's LlamaRisk has proposed a measure to disable all Elixir market Gauges to prevent CRV emissions from flowing into related pools. Due to the collapse of the trading partner Stream Finance, the synthetic stablecoin deUSD and its derivatives have ceased issuance and redemption from November 6 to 7.

In the past week, stablecoins experienced a $1 billion outflow, marking the largest loss since the Luna collapse in 2022. Among them, xUSD was wiped out after losing $93 million, csUSDL's TVL dropped by 95%, and deUSD and sdeUSD also faced liquidity crises.

Gate News Bot Message: As of November 7th, according to CoinMarketCap data, DEUSD (Elixir deUSD) is currently priced at $0.41. It has decreased by 58.91% over the past 24 hours, with a high of $1.00 and a low of $0.40 during that period. The 24-hour trading volume is $56,000. Its current market capitalization is approximately $37.4 million, down by $53.6 million compared to yesterday. Elixir Network is a decentralized network providing instant liquidity for institutional-grade DeFi. DEUSD is the network's stablecoin, designed to bring institutional-level liquidity to real-world assets. The Elixir Network has a block time of 0.90 seconds, with a total transaction volume of 133 million transactions, processing 340 transactions per second. The network has already partnered with several well-known institutions such as Ha.

BlockBeats News: On November 7th, DeFi research and risk management firm Gauntlet previously recommended that the Ethereum lending protocol Compound implement a temporary emergency pause on the following standalone lending markets in v3, including: USDC on Ethereum, USDS on Ethereum, and USDT on Ethereum. The proposal has been approved. After the pause, lending markets for USDC and USDS resumed withdrawals on November 6th. Compound stated that it will gradually restore the markets while ensuring system security. This move aims to address the liquidity crisis of Elixir's deUSD and sdeUSD, both of which are listed as collateral on Ethereum using USDC, USDS, and USDT. November 4th.