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December 31, 2025.
Solstice Finance's USX, a yield-bearing synthetic stablecoin native to Solana, has reached over $328 million in total value locked, establishing it as the largest Solana-native stablecoin by TVL as of year-end 2025.
This milestone follows rapid growth from its September 2025 launch at $160 million TVL and underscores the maturation of Solana's DeFi ecosystem, driven by institutional-grade yield strategies and key protocol integrations.
Key Takeaways
- YieldVault delivers delta-neutral returns via arbitrage and hedging, historically 14% IRR.
- Integrations with Kamino and Ondo expand lending, fixed-yield, and collateral options.
- Brief December depeg resolved swiftly, confirming over-collateralization and primary market stability.
- Milestone reflects Solana's growing role in yield-native stablecoin infrastructure.
Background on USX and Solstice Finance
Solstice Finance, backed by Deus X Capital and investors including Galaxy Digital, MEV Capital, and Bitcoin Suisse, launched USX in September 2025 as a permissionless, delta-neutral stablecoin.
USX is fully collateralized with fiat-backed assets like USDC and USDT, maintaining a 1:1 peg while providing access to YieldVault, a protocol executing arbitrage and hedged staking strategies for real-time yields.
The protocol addresses a key gap: Solana hosts over 5% of global stablecoin supply but historically lacked a dominant native yield-bearing option.
USX holders lock tokens to receive eUSX, sharing in fund returns with a historical net IRR of approximately 14% and no monthly losses in backtested data.
Backed by Chainlink oracles for transparency and third-party attestations, USX prioritizes over-collateralization and insurance funds for risk mitigation.
Growth Trajectory and Recent Milestones
USX launched with $160 million committed TVL, scaling to over $300 million by mid-December 2025. As of December 31, TVL exceeded $328 million, reflecting sustained inflows despite market volatility.
This positions USX ahead of other Solana-native stablecoins in TVL, while bridged assets like USDC and USDT dominate overall supply (Solana's total stablecoin market cap neared $17 billion in late 2025).
Growth drivers include:
- Delta-neutral yields averaging 10-14%, outperforming non-yielding alternatives.
- Permissionless access bridging retail and institutional users.
- Support from Solana Foundation, highlighting USX's role in retaining on-chain capital.
Key Integrations Driving Adoption
USX composability has expanded through partnerships:
- Kamino Finance: October 2025 integration enables automated liquidity loops, lending/borrowing of USX/eUSX, and leveraged yield strategies.
Kamino users access fixed-yield products like PT-USX (principal tokens) at up to 16.5% APY via Exponent Finance.
- Ondo Finance: December 2025 addition of OUSG (tokenized U.S. Treasuries) as collateral strengthens backing with short-term government instruments, enhancing liquidity and daily yield accruals.
- Additional ties: Raydium and Orca for DEX liquidity, boosting trading depth.
These integrations distribute USX across lending markets, DEXs, and fixed-income products, increasing utility and TVL retention.
Challenges and Resilience: The December Depeg Event
On December 26, 2025, USX briefly depegged to $0.10 on secondary markets due to holiday-thin liquidity on Solana DEXs like Orca and Raydium.
The event was isolated to trading venues; primary mint/redemption remained operational at $1, with reserves over 100% collateralized.
Solstice injected liquidity alongside market makers, restoring the peg to $0.99-1.00 within hours. TVL dipped minimally (under 3%), with third-party attestations confirming solvency. The incident highlighted secondary market risks but demonstrated protocol response and underlying stability.
Post-event, Solstice announced deeper liquidity provisions and collateral expansions.
Implications for Solana's Stablecoin Ecosystem
USX's rise signals Solana's DeFi maturation. Native yield-bearing stablecoins reduce bridging outflows, supporting ecosystem TVL growth to $13-35 billion ranges across metrics in 2025.
Competing with bridged USDC/USDT, USX captures demand for on-chain yields, positioning Solana as a hub for institutional-grade products.
Upcoming SLX token (governance/utility) and airdrops tied to TVL milestones further incentivize participation.
Conclusion
USX's ascent to over $328M TVL cements Solstice's position in Solana DeFi, offering competitive yields and strong integrations amid ecosystem expansion.
Resilience through market stress positions it for continued dominance in native stablecoins.
Read Next:
- Best Cross-Chain Stablecoin Bridges for 2026
- Best Stablecoins for Cross-Border Payments in 2025
- The Role of Stablecoins in Monetary Policy Transmission
FAQs:
1. What is USX?
USX is a Solana-native synthetic stablecoin issued by Solstice Finance, pegged 1:1 to USD and backed by over 100% collateral in USDC, USDT, and assets like Ondo's OUSG.
2. How does USX generate yield?
Holders lock USX in YieldVault for eUSX, accessing institutional delta-neutral strategies including funding-rate arbitrage and hedged staking.
3. Is USX the largest stablecoin on Solana?
No, bridged USDC/USDT lead overall supply, but USX holds the highest TVL among native Solana-issued stablecoins at over $328M.
4. What caused the December 2025 depeg?
Secondary market liquidity drain during low-volume holiday trading; resolved via injections without impacting reserves.
5. How to acquire or use USX?
Mint via Solstice app with collateral, trade on DEXs, or integrate via partners like Kamino for lending/yield farming.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
