USX
USX is a synthetic stablecoin native to the Solana blockchain, pegged 1:1 to the U.S. dollar. Developed by Solstice Finance, it is designed to function as a medium for payments and decentralized finance (DeFi) applications while providing users with access to institutional-grade, delta-neutral yield strategies through its integrated YieldVault protocol. [1] [2]
Overview
USX was created by Solstice Finance, an on-chain asset management protocol backed by the investment firm Deus X Capital. [3] The stablecoin was developed to address a perceived gap in the Solana ecosystem for a dominant, yield-native stablecoin. The project's stated goal is to prevent stablecoin total value locked (TVL) from leaving the Solana network in search of yield opportunities on other blockchains. [4] At its public launch on September 30, 2025, the protocol reported over $160 million in deposited TVL. [5]
The stablecoin is fully collateralized by other fiat-backed stablecoins, initially using USDC and USDT. [1] Transparency of these reserves is maintained through an integration with Chainlink's Proof of Reserve service, which allows for real-time, on-chain verification of the assets backing USX. [6] The project's design emphasizes capital velocity, composability with other DeFi protocols, and accessibility for both retail users and institutional investors. [2]
In a statement regarding the launch, Solstice CEO and Co-Founder Ben Nadareski commented on the project's objective: "Legacy stablecoins maintain majority market share, yet not a single leading stablecoin was born natively on Solana and no dominant yield-native stablecoins currently exist in the ecosystem... We built USX addressing this market gap on day one, a stablecoin that maintains all of the frictionless transaction benefits while giving access to institutional-grade yields that are native to the protocol." [4] The launch also received support from the Solana Foundation, with its president, Lily Liu, stating, "Solstice is driving real, sustainable onchain revenues within the Solana ecosystem and the launch of USX and YieldVault unlocks new opportunities for builders, users, and investors." [5]
History
On September 24, 2025, Solstice Finance announced the upcoming launch of USX, detailing strategic partnerships with Chainlink for oracle services, and Ceffu and Copper for institutional custody solutions. [7] The official public launch of USX and the accompanying YieldVault program occurred on September 30, 2025. [8]
Shortly after its debut, in early October 2025, USX and its yield-bearing counterpart, eUSX, were integrated into the liquidity pools of Raydium, a major automated market maker (AMM) on Solana, to enhance liquidity depth and interoperability within the ecosystem. [9] On October 11, 2025, during a significant cryptocurrency market downturn where over $19 billion was reportedly liquidated market-wide, the Solstice team reported that both USX and eUSX maintained their pegs. [8] In addition to its primary deployment on Solana, a version of USX was also introduced on the Scroll network, where it was described as a "ZK-powered Neodollar" designed for payments. [10]
Technology
USX is built as a native asset on the Solana blockchain to utilize the network's high transaction throughput, low fees, and fast finality. The protocol's programs are designed to be modular and are governed by a Squads multisig wallet to allow for controlled upgrades. [1]
Collateralization and Stability
USX is a synthetic stablecoin designed to maintain a 1:1 peg with the U.S. dollar through full collateralization. At its launch, the protocol accepted deposits of high-liquidity, fiat-backed stablecoins, specifically USDC and USDT, to mint USX. [1] The protocol has a stated roadmap to expand the list of accepted collateral to include other assets such as SOL, ETH, and BTC. [11] The stability of the peg is supported by a multi-oracle system for accurate price feeds and a strict 1:1 collateralization ratio enforced by the minting and redemption program. [1]
Yield Generation (YieldVault)
The core utility of USX is its integration with the Solstice YieldVault, the protocol's primary yield-generation engine. Users can lock their USX into the YieldVault to receive eUSX, a liquid, yield-bearing token that represents their principal deposit plus accrued interest. [12]
The YieldVault generates returns through actively managed, delta-neutral trading strategies, which are designed to be market-neutral and minimize exposure to the directional price movements of crypto assets. These strategies are managed by a team with a background in traditional finance and digital assets. The primary strategies employed include:
- Funding Rate Arbitrage: Capitalizing on discrepancies in perpetual futures funding rates across various exchanges.
- Hedged Staking: Earning staking rewards from assets while simultaneously hedging against the price volatility of those assets.
- Tokenized Treasury Allocations: Investing a portion of the vault's assets in low-volatility instruments like tokenized U.S. Treasury bills to enhance principal security. [12]
The protocol has reported historical performance metrics for its underlying strategies, including a 21.5% return in 2024 and a three-year average return of 13.8%. [1]
Proof of Reserves and Interoperability
To ensure transparency, the USX protocol integrates Chainlink Proof of Reserve. This service provides continuous, on-chain verification of the collateral assets backing the stablecoin, allowing users to audit the reserves in real-time. [13] For cross-chain functionality, USX utilizes Chainlink's Cross-Chain Interoperability Protocol (CCIP). This integration is designed to facilitate the secure transfer of USX across different blockchain networks, enhancing its utility beyond the Solana ecosystem. [7]
Tokenomics
- Name: USX
- Blockchain: Solana
- Contract Address (Solana):
6FrrzDk5mQARGc1TDYoyVnSyRdds1t4PbtohCD6p3tgG - Max Supply: Infinite
Ecosystem
The Solstice ecosystem is composed of several interconnected components designed to support the utility and adoption of USX. The protocol includes a rewards system called "Flares," which allows users to earn points for activities like providing liquidity and completing quests, redeemable for the future SLX token. [13]
eUSX Token
eUSX is a yield-bearing liquid staking token that users receive in exchange for depositing USX into the Solstice YieldVault. The token represents a user's proportional share of the vault's net asset value (NAV), including both the initial principal and the accrued yield. The value of eUSX is designed to increase over time relative to USX as the YieldVault generates returns. [1]
SLX Token
SLX is the planned native utility and governance token for the Solstice Finance protocol. While not yet launched as of October 2025, it is intended to provide additional incentives for users who engage with USX and eUSX across the DeFi ecosystem. The token is expected to be used for distributing protocol rewards and will have a community-focused distribution model with no private venture capital allocation. [2]
Institutional Services
Solstice offers a distinct suite of services for institutional and KYC-approved investors to facilitate large-scale transactions with USX. Eligible institutions can mint and redeem USX directly from the protocol with a minimum transaction size of $500,000, bypassing public markets to avoid slippage. This process is executed as a single, atomic on-chain transaction with guaranteed 1:1 execution based on real-time oracle pricing. [1]
The protocol also provides off-exchange settlement services through partnerships with institutional-grade custody providers Ceffu and Copper. This feature allows large firms to trade on exchanges while their assets remain secured in segregated third-party custody, a structure designed to minimize counterparty risk. [7] Additional institutional features include custom settlement windows, fiat onramps via partner DeusX Pay, and dedicated 24/7 support. [1]
Security and Audits
The smart contracts for the Solstice protocol, including those governing USX, have undergone security audits by the cybersecurity firm Halborn. [6] The project also partners with Hypernative for real-time threat detection and Bugcrowd for vulnerability management. Solstice has stated plans to implement a public bug bounty program, conduct monthly attestations, and perform annual funds management audits. The platform's infrastructure incorporates standard security measures such as multi-factor authentication (MFA), role-based access controls, and continuous monitoring. [1]
Team and Partnerships
Solstice Finance was developed by Solstice Labs AG, a company within the Deus X Enterprise portfolio. The core team consists of over 30 individuals with experience from firms such as Solana Labs, Coinbase, Galaxy Digital, Standard Chartered, BlackRock, and UBS. [5] The leadership team includes CEO and Co-Founder Ben Nadareski, a former executive at Galaxy Digital and SIX Digital Exchange, and Chairman Tim Grant, who is also the CEO of Deus X Capital. [14]
The project launched with backing and liquidity from several institutional entities, including Galaxy Digital, MEV Capital, Bitcoin Suisse, Auros, and Deus X Capital. [4] Solstice has established a network of over 50 partners across the DeFi and digital asset landscape. Key technology partners include Solana, Chainlink, and Pyth for blockchain and oracle infrastructure. Its DeFi and liquidity partners include Kamino, Raydium, and Orca. [14]