Elixir Launches USDC Recovery Portal for Lenders Impacted by Stream Insolvency

Elixir Labs, the issuer of yield-bearing tokenized fund deUSD, has launched a claims portal to return funds to lenders impacted by its exposure to Stream.

What's the Scoop?

• Proposed Settlement: Elixir has committed to an approximately 80% recovery rate for users who lent against its deUSD and sdeUSD tokenized yield products through Euler and Morpho's lending markets. Eligible users in affected vaults and markets (as determined by a snapshot taken on or about November 2, 2025) can claim a pro rata distribution of recovered funds by agreeing to an Elixir-proposed settlement.
• Liability Release: By accepting the terms of Elixir's claim portal, impacted lenders agree to release all claims (whether known or unknown) and waive class action rights against, "Elixir, Euler, and certain curators and other persons described below, as well as their affiliates and personnel and the other releasees described below."
• Unhappy Lenders: Immediately after Elixir's decision to shutter withdrawals in November, DeFi risk curator K3 Capital threatened legal action, alleging a "coordinated fraudulent scheme" orchestrated by Elixir and facilitated by Stream Finance. At the time of writing, K3 Capital had yet to issue a public statement on Elixir's proposed settlement.