The USX stablecoin on Solana experienced a liquidation, falling to $0.10 on the secondary market but rebounded to $0.94 after Solstice injected emergency Capital .
The incident, recorded on December 26th according to security alert data, indicates that significant liquidation fluctuations could cause prices to briefly deviate from their Peg point, even though the project claims the underlying assets remain unchanged.
- USX on Solana saw a sharp drop in liquidation , with the price falling to $0.1 USD in the secondary market.
- Solstice injects emergency Capital , USX recovers to $0.94.
- The project confirms that USX remains 100% guaranteed, and NAV is unaffected.
Price movements and liquidation of USX
The USX on Solana experienced a sudden liquidation , causing its price on the secondary market to fall to $0.10, before recovering to $0.94.
According to PeckShield, the drop coincided with a sharp decline in liquidation , causing prices in the secondary market to deviate from the Peg point. The recovery to $0.94 occurred after an emergency Capital injection, reflecting the direct impact of the added liquidation on trading prices.
This fluctuation highlights market technical risk: when liquidation is thin, prices can slide sharply even though this doesn't necessarily immediately reflect the quality of the underlying assets. The difference from $0.1 to $0.94 also implies a rapid market reaction to Capital inflows.
Solstice's response regarding collateral and NAV
Solstice stated that USX remains undervalued at over 100% and its net asset value (NAV) remains unaffected.
The Solstice team emphasized that the issue centered on liquidation and pricing in the secondary market, not on a shortage of assets. The overcollateralized statement, exceeding 100%, implied that the value of the collateralized assets was greater than the total obligations of the USX, aiming to allay concerns about solvency.
In the context of stablecoins, a stable NAV but a sharp price deviation is often related to trading conditions and Order Book depth. However, the $0.94 level shows that USX has not yet returned to $1 at the time mentioned, so the market may continue to monitor liquidation and price stabilization mechanisms.
