Compound has temporarily halted multiple stablecoin lending markets on Ethereum in response to the Elixir liquidity crisis

On November 7th, the DeFi research and risk management company Gauntlet previously recommended that the Ethereum lending protocol Compound implement a temporary emergency pause on the following standalone borrowing market Comet in v3, which includes: USDC on Ethereum, USDS on Ethereum, and USDT on Ethereum. The proposal has been approved, and withdrawals for the USDC and USDS lending markets were resumed on November 6th. Compound has stated that it will gradually restore the markets while ensuring system security. This action is designed to address the liquidity crisis of Elixir's deUSD and sdeUSD, both of which are listed as collateral on Ethereum USDC, USDS, and USDT. On November 4th, Stream Finance disclosed a $93 million loss in its fund assets, with Elixir having an exposure of $68 million, resulting in a liquidity crisis for its stablecoins deUSD and sdeUSD.