The post Solstice Finance’s USX Depegs Briefly on Liquidity Crunch, Collateral Reported Intact appeared on BitcoinEthereumNews.com.

Solstice Finance’s USX stablecoin depeg to $0.10 stemmed from secondary market liquidity drain on Solana venues, not collateral issues. Solstice injected liquidity, recovering it to $0.94 rapidly and now stable at $0.998 with full backing above 100% collateralization. USX depeg caused by liquidity evaporation on Solana DEXes, confirmed by PeckShieldAlert as no collateral fault. Solstice team verified net asset value and custodied assets remain unaffected. Price stabilized at $0.998 per CoinMarketCap data; TVL exceeds $317 million. Solstice USX stablecoin depeg hits $0.10 due to secondary liquidity crunch, not backing issues. Team restores stability fast—discover response, current status, and why USX remains secure for Solana users. What Caused the Solstice USX Depeg? Solstice USX depeg occurred when the Solana-based synthetic stablecoin dropped to $0.10 due to a severe liquidity drain on secondary markets, as flagged by on-chain analytics platforms and blockchain security firm PeckShieldAlert. This event was not linked to any problems with underlying collateral or net asset value, which Solstice confirmed remained fully intact and collateralized above 100%. The rapid intervention by Solstice through liquidity injections restored the price to $0.94 shortly after, demonstrating the protocol’s resilience in distinguishing primary market stability from secondary trading pressures. How Did Solstice Respond to the USX Stablecoin Depeg? Solstice Finance acted swiftly following the USX stablecoin depeg. In a statement on X, the team emphasized that the underlying net asset value and custodied assets backing USX were entirely unaffected. They committed to injecting additional liquidity into secondary markets and highlighted that 1:1 redemptions in the primary market remained fully operational. Solstice also requested an immediate third-party attestation report to further validate their collateral position, promising to share it publicly once available. The company clarified the key difference between primary and secondary markets: primary markets enable direct minting and redemption at face value with…

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Filed under: News - @ December 26, 2025 5:25 pm