
The post explains how Compound lifted the emergency pause on USDC and USDS withdrawals after risk manager Gauntlet warned of a liquidity squeeze tied to Elixir’s deUSD token, while USDT remains paused pending a safety buffer. It details deUSD’s rapid de‑peg—from $1 to near zero—following Stream Finance’s collapse, which exposed a $68 million loan and triggered broader stress across synthetic dollar assets. The article also notes the downstream impact on protocols like fastUSD and Yei Finance, illustrating how interconnected DeFi lending markets can amplify shocks. The author adopts a factual, timeline‑driven approach to connect the risk alert, governance response, and market fallout.
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