USX, a stablecoin present on Solana, temporarily lost its parity with the US dollar.
In the last few hours, The token was trading below $0.92as seen in the following graph.
As reported by CriptoNoticias; USX is a collateralized synthetic stablecoin pegged to the US dollar. This financial product is developed by Solstice Finance and is a decentralized finance (DeFi) protocol that operates on the Solana network.
This is worth clarifying because the Solstice Finance team explained what is happening to this financial instrument after the USX lost parity with the dollar.
Through publications on social networks, it was reported that the temporary loss in USX parity was due to liquidity problems in the secondary market. It is not due to any structural flaws in the protocol or stablecoin support.
In the early morning hours of December 26, selling pressure on decentralized exchanges (DEXs) such as Orca and Radium exceeded available liquidity, causing USX prices in these markets to fall below the dollar.
Faced with this situation, Solstice began injecting liquidity a few hours later. Prices will soon recover and return to near baseline.
The team emphasized that USX continues to be supported at least 100% of the time, that the primary protocol is unaffected, and that certified partners continue to have access to 1:1 swaps on the primary market.
In this context, they found that low prices occur exclusively in the secondary market, where values are determined by supply and demand and can diverge from the dollar in times of stress or illiquidity.
Those who sold USX during this period when USX lost its 1:1 parity with the dollar, Although the difference cannot be recovered, the purchaser took advantage of the arbitrage opportunity.this does not mean there is a problem with token support.