Solana-native stablecoin USX experienced a brief but significant depeg on decentralized exchanges (DEXs) on Friday, December 26, 2025. The stablecoin, issued by Solstice Finance, saw its price plummet to as low as $0.10 on platforms like Orca and Raydium due to a sudden drain in liquidity.
The depeg occurred due to heavy sell pressure that overwhelmed the available liquidity on these DEXs. As sellers rushed to exit their positions, the price of USX dropped sharply below its intended $1 peg. Blockchain security firm PeckShieldAlert reported the sharp drop in price on secondary markets. Data from GeckoTerminal's Orca pool showed a less extreme dip to around $0.80 before recovery.
Solstice Finance responded swiftly by injecting liquidity into the affected pools starting at approximately 04:30 UTC. This intervention led to an almost immediate rebound in the price of USX, bringing it back to around $0.94. Solstice Finance stated that it would continue to support secondary markets as needed.
The company reassured users that USX's reserves remained overcollateralized and that primary-market redemptions were unaffected. They also mentioned they have requested a third-party attestation to verify collateral. Solstice Finance clarified that 1:1 redemptions remain available to institutional partners with permissioned access. The team is actively collaborating with partners to enhance secondary-market liquidity to mitigate the impact of similar events in the future.
Solstice Finance also confirmed that the volatility did not affect eUSX positions or its YieldVault products. Trades executed during the depeg episode were final, meaning buyers who purchased USX at lower prices were not obligated to return the funds.
The incident has sparked discussions about liquidity management in the Solana ecosystem. While temporary depegs are not uncommon, the severity of this event raised concerns among crypto users. Some users who sold USX during the downturn incurred losses, while others who bought at a discount profited from arbitrage opportunities.
USX is a Solana-native, dollar-pegged stablecoin issued by Solstice Finance. At the time of the incident, its market capitalization was around $284 million, according to CoinMarketCap. The depeg was attributed to the draining of liquidity from secondary markets rather than a hack or loss of funds. The stablecoin's underlying assets and net asset value (NAV) remained unaffected, with a collateralization ratio exceeding 100%.
This event serves as a reminder of the potential risks associated with stablecoins, especially those relying on DEX liquidity. The prompt response from Solstice Finance and the restoration of the peg offered an important lesson on the significance of transparency and proactive measures in maintaining stablecoin stability.
