On decentralized exchanges, the USX stablecoin experienced a temporary drop below its dollar peg due to significant selling pressure. Early Friday, trading saw USX fall as low as $0.10 before rebounding after liquidity support was provided by its issuer, Solstice Finance. This intervention occurred around 04:30 UTC as the company aimed to stabilize the market.
Data from GeckoTerminal indicated that the more typical trading range for USX was around $0.80 during this period, with the price stabilizing near $0.99 once liquidity was restored. Solstice Finance reassured users that the stablecoin's reserves remain overcollateralized and that primary-market redemptions were not impacted.
The firm is also collaborating with partners to enhance secondary-market liquidity to mitigate future volatility. Institutional partners can still access 1:1 redemptions, and trades executed during the liquidity crunch are considered final. USX, which has a market capitalization of approximately $284 million, continues to maintain its operational integrity despite this incident.