Elixir’s DEUSD Stablecoin Gains 12,071% in 24 Hours

Amid the growing popularity of yield stablecoins like those developed by Blast, Ethena, Mountain Protocol, Paxos, and the recently launched Gyroscope “savings gyd” (SGYD), a new player has entered the market. On Wednesday, Elixir, a modular DPoS network with 13,563 validators, launched DEUSD, a yield crypto token pegged to the US dollar similar to Ethena’s USDE.

DEUSD is a fully-collateralized synthetic dollar backed by the Elixir network. It is minted using STETH and SDAI, with the escrowed collateral used to short ETH, thereby establishing a delta-neutral position. The Elixir team claims that DEUSD achieves greater decentralization than its competitors by using verifiable proofs of execution and open source code. DEUSD also claims to minimize its underlying exposure to adverse funding conditions.

DEUSD has seen a significant increase in market value, rising from $952,443 to $115.92 million, a 12,071% increase in 24 hours. This rapid growth indicates growing demand for yield-based, dollar-pegged assets in the cryptocurrency market. However, the collapse of UST Terra and the collapse of yield-based decentralized finance protocol Anchor have highlighted potential risks in this ecosystem.

Image: The Cryptonomist

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