At the time of writing, USX trades near $0.99 after a recovery. The Solana-based stablecoin issued by Solstice Finance depegged on December 26. The token briefly changed hands as low as $0.10 on decentralized exchanges. 

Thin liquidity and a rush to sell pushed prices far below parity. Solstice Finance said the dislocation stayed in secondary markets and did not affect reserves or primary redemptions.

USX Stablecoin Depeg Hit DEX Pools, Not Redemptions

Traders reported heavy selling in USX liquidity pools on Solana DEXs. Liquidity drained from key pairs, accelerating the drop. Because these venues depend on liquidity providers, prices can slide quickly when sellers dominate flow. In addition, arbitrage bots can struggle when pool depth collapses, allowing discounts to widen rapidly.

Solstice Finance drew a clear line between secondary trading and the primary market. The issuer said approved partners can mint and redeem USX at a 1:1 rate under KYC controls. Retail traders, however, rely on DEX liquidity and must accept market prices during stress.

Solstice Finance Injected Liquidity as USX Rebounded

Solstice Finance said it recognized the volatility within hours and coordinated with partners to add depth. Around 04:30 UTC, on-chain activity showed fresh liquidity entering the markets. USX prices reacted quickly as liquidity returned. After the injection, traders saw USX trade between $0.94 and $0.99 across venues.

The peg did not snap back in a single move, yet spreads narrowed as depth improved. CoinMarketCap later showed USX trading near $1, while volume remained elevated. The same data showed a 24-hour volume of nearly $30 million during the aftermath.

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Collateral Claims and Liquidity Questions Followed the Rebound

Solstice Finance said USX stayed over 100% collateralized throughout the episode and kept custodied assets intact. The team said the core protocol operated as designed, since the stress hit freely traded pools. Solstice Finance also said it would welcome third-party attestation to independently verify reserves. It also said 1:1 redemptions continued for permissioned partners during the volatility.

Even so, the size of the move renewed debate about stablecoin liquidity design on Solana. Some traders who sold during the drop locked in losses because secondary-market swaps settle immediately. Others who bought at steep discounts captured short-term arbitrage gains as prices recovered. The event also raised questions about how liquidity incentives scale with circulating supply.

USX launched in late September 2025, and Solstice highlighted Chainlink integrations around the rollout. The depeg event now puts focus on how the project distributes liquidity across DEX pools. 

Analysts will likely track liquidity incentives, market-maker commitments, and access to redemptions as USX tries to rebuild confidence. Moreover, Solstice Finance says it will continue to support secondary market liquidity for users and makers in the coming days.