Compound has suspended multiple stablecoin lending markets on Ethereum in response to the Elixir liquidity crisis.

ChainCatcher reported that DeFi research and risk management firm Gauntlet previously recommended that the Ethereum lending protocol Compound implement a temporary emergency pause on the following independent lending Comet markets in v3, including: USDC on Ethereum, USDS on Ethereum, and USDT on Ethereum. The proposal has now been approved, and after the pause, withdrawals for USDC and USDS lending markets were resumed on November 6.

Compound stated that it will gradually restore the markets while ensuring system security. This move is intended to address the liquidity crisis of deUSD and sdeUSD under Elixir, both of which have been listed as collateral on Ethereum USDC, USDS, and USDT. On November 4, Stream Finance disclosed that its fund assets suffered a loss of $93 million, with Elixir bearing an exposure of $68 million, resulting in a liquidity crisis for its stablecoins deUSD and sdeUSD.