The Solana-based stablecoin USX experienced a severe and sudden depeg late Thursday, plunging to as low as $0.10 on secondary markets after a swift liquidity drain disrupted normal trading conditions. The dramatic drop triggered concerns among users and observers as market volatility spread across decentralized exchanges tracking the asset.
The stablecoin has since recovered to around $0.94 after developers at Solstice Finance, the issuer of USX, intervened by injecting fresh liquidity into affected trading pools. The team acknowledged the volatility but stressed that the underlying collateral backing USX was never at risk.
“We are aware of some major volatility in the secondary market for USX tonight,” Solstice stated. “The underlying NAV and the custodied assets backing USX remain entirely unaffected and more than 100% collateralized.”
The project attributed the incident solely to secondary market liquidity issues, not to failures in collateral reserves, smart-contract mechanisms, or internal accounting. To reinforce confidence, Solstice said it has requested an immediate third-party attestation report, with plans to release the findings once they are available.
In its statement, the team reiterated that primary market redemptions remain fully operational, allowing users to redeem USX for its collateral at a 1:1 rate, unaffected by price instability on secondary trading platforms.
This indicates that the stablecoin’s peg remains enforceable through official channels even as market makers continue working to normalize decentralized exchange pricing.
“We will continue to inject liquidity into the secondary markets to ensure stability,” the company said, noting that both the core protocol and user assets remain secure.
The incident highlights the vulnerability stablecoins can face when liquidity imbalances occur, especially in fragmented or rapidly moving markets where price discovery can become distorted.
While USX’s immediate recovery appears to have prevented broader contagion, the event underscores ongoing fragility in the stablecoin sector, particularly on newer networks like Solana, where liquidity depth remains a critical stabilizing factor.
Solstice says it will provide continued updates as liquidity conditions fully normalize and independent verification results are published.