The USX stablecoin, a Solana-native token pegged to the US dollar, briefly lost its peg on decentralized exchanges (DEXs) before recovering after its issuer stepped in with liquidity support. The incident highlights ongoing concerns around liquidity depth and market structure in the rapidly growing stablecoin sector.
USX Depeg Triggered by Thin Liquidity on Solana DEXs
USX traded sharply below its intended $1 peg early Friday on Solana-based DEXs such as Orca and Raydium, after heavy sell pressure overwhelmed available liquidity. Blockchain security firm PeckShieldAlert reported that USX briefly traded as low as $0.10 in isolated secondary-market trades, a move attributed to extremely thin liquidity at the time.
More aggregated data presents a less dramatic picture. According to GeckoTerminal data from Orca pools, USX dipped to around $0.80 on a 15-minute chart, which better reflects where most trading volume occurred. Prices rebounded quickly as liquidity returned, stabilizing near $0.99.
Solstice Finance, the issuer of USX, said it began injecting liquidity into secondary markets around 04:30 UTC. Following this intervention, USX prices moved back toward the dollar peg. The company emphasized that the event did not affect primary-market redemptions and that USX reserves remain overcollateralized.
Solstice Response and Broader Stablecoin Market Implications
Solstice Finance stated that 1:1 redemptions remain available to institutional partners with permissioned access and confirmed it has requested a third-party attestation to verify the backing of USX. The issuer also said it is working with partners to deepen secondary-market liquidity to reduce the likelihood of similar price dislocations in the future.
The company added that the volatility did not impact eUSX positions or its YieldVault products. Trades executed during the episode are considered final, and buyers who acquired USX at discounted prices are not required to return funds.
At the time of writing, USX has a market capitalization of approximately $284 million, according to CoinMarketCap. The incident comes amid rapid expansion in the global stablecoin market, which has grown significantly since the US passed the GENIUS Act to establish a regulatory framework for dollar-pegged tokens.
Regulators and policymakers are increasingly watching stablecoins closely. European Central Bank officials and the International Monetary Fund have warned that instability in large stablecoins could pose broader financial risks, particularly as these assets become more embedded in global payment systems. With the total stablecoin market now exceeding $300 billion, episodes like the USX depeg underscore both the sector’s growth and the challenges that come with it.
