USX, a stablecoin that lives in Solana, momentarily lost its parity with the US dollar.
In the last hours, the token was trading below $0.92as seen in the following graph:
As CriptoNoticias has reported, USX is a collateralized synthetic stablecoin pegged to the US dollar. The financial product is developed by Solstice Finance, a decentralized finance (DeFi) protocol that operates on the Solana network.
This is worth clarifying because after USX lost parity with the dollar, the Solstice Finance team explained what was happening with the financial product.
Through a publication on its social networks, it was reported that the momentary loss of USX parity was due to a liquidity problem in the secondary market, and not to a structural failure of the protocol or the support of the stablecoin.
During the early morning hours of December 26, selling pressure on decentralized exchanges (DEXs) such as Orca and Raydium exceeded available liquidity, causing the price of USX to fall below the dollar in those markets.
Faced with this situation, Solstice began to inject liquidity a few hours later, which allowed the price would recover quickly and return to close to the reference value.
The team highlighted that USX remained more than 100% supported at all times, that the primary protocol was not affected, and that 1:1 swaps in the primary market remained available to authorized partners.
In this context, they clarified that the low prices occurred exclusively in the secondary market, where the value is determined by supply and demand and can deviate from the dollar in times of stress or low liquidity.
Those who sold USX during that period, when it lost 1:1 parity with the dollar, cannot recover the difference, while those who bought took advantage of an arbitrage opportunitywithout this implying a problem with the support of the token.