Compound Pauses Multiple Stablecoin Markets on Ethereum Following Elixir Liquidity Crisis

Ethereum-based lending protocol Compound paused several v3 Comet markets, including USDC, USDS, and USDT markets, following a proposal by DeFi research firm Gauntlet that passed. Withdrawals for USDC and USDS lending markets resumed on Nov. 6, with Compound stating it will gradually restore markets while ensuring system security. The pause responds to a liquidity crisis affecting Elixir's deUSD and sdeUSD tokens, both listed as collateral across the markets, following Stream Finance's Nov. 4 disclosure of a $93 million loss in fund assets, with Elixir bearing $68 million in exposure.