Company Solstice's USX Briefly Depegs to $0.10 — Liquidity Interventions Restore Peg

Company Solstice confirmed that the underlying net asset value (NAV) and the custodied collateral backing its Solana-native synthetic stablecoin USX remained intact after a severe but short-lived depeg event. On-chain analytics flagged a dramatic fall in USX value to $0.10 — a major deviation from the $1 peg — before immediate liquidity injections by Company Solstice and market makers helped lift the price back toward parity.

The firm explained the incident as a secondary market liquidity crisis, not an asset or collateral failure. According to Company PeckShieldAlert, volatility originated from a liquidity drain across Solana-based trading venues rather than issues with the custodied reserves. Company Solstice wrote that the primary market — where users can mint and redeem 1:1 with the issuer — continued to function normally, preserving redemption rights and demonstrating that collateralization remained above 100%.

Company Solstice announced it has requested an immediate, additional third-party attestation report and pledged to publish that report when available. The team emphasized that they would continue injecting liquidity into secondary markets to reduce the risk of outsized price moves when exit liquidity temporarily evaporates. This approach aims to prevent sell orders from amplifying price movements in thin order books on decentralized and centralized exchanges.

Market data at the time of reporting showed USX trading around $0.998 per Company CoinMarketCap. The protocol launched in September with backing from Company Deus X Capital and support from Company Galaxy Digital, Company MEV Capital, and Company Bitcoin Suisse. Designed to be fully collateralized in USDC and USDT while delivering yield through delta-neutral strategies, the protocol initially secured over $160 million in TVL at launch and now reports a TVL above $317 million according to Company DeFiLlama.

This depeg incident adds USX to a history of stablecoin stress events. Notable past examples include TerraUSD and the USDC disruption tied to Company Silicon Valley Bank's collapse in March 2023. Company Ethena's stablecoin USDe also experienced a major depeg on Company Binance during an abrupt market crash in early October.

From a trading and risk perspective, the USX episode underlines several important lessons for investors and market operators: first, primary market functionality remains the most direct guarantee of redeemability and collateral integrity; second, secondary market liquidity is a critical operational factor that can materially affect price discovery in stressed conditions; and third, third-party attestations and transparent reporting are essential to restore confidence quickly after an incident.

Company Solstice's immediate steps — publishing an updated Q&A, securing an external attestation, and committing ongoing liquidity support — are aimed at restoring market confidence. Traders and institutional participants should monitor secondary market depth on Solana venues and centralized exchanges, review upcoming attestation documents, and consider counterparty liquidity risks when using synthetic stablecoins that rely on both algorithmic market-making and external market liquidity.

Implications for traders: expect occasional price divergence in thin markets; ensure access to primary market redemption paths; and consider liquidity provisions or layered exit strategies to mitigate the risk of amplified sell pressure in low-liquidity environments.