{"id":90753,"date":"2025-11-07T10:34:53","date_gmt":"2025-11-07T07:34:53","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=90753"},"modified":"2025-11-07T10:37:28","modified_gmt":"2025-11-07T07:37:28","slug":"usdx-stablecoin-loses-its-dollar-peg-drops-to-0-30","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/usdx-stablecoin-loses-its-dollar-peg-drops-to-0-30\/","title":{"rendered":"USDX stablecoin loses its dollar peg, drops to $0.30"},"content":{"rendered":"<p>On November 6, the synthetic <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">\u201cstablecoin\u201d<\/a> USDX by Stable Labs lost its peg to the US dollar. Over 24 hours, the token fell by more than 60% to $0.30.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"425\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-db3ca5d515455f21-8893377562372406-1024x425.png\" alt=\"image\" class=\"wp-image-269147\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-db3ca5d515455f21-8893377562372406-1024x425.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-db3ca5d515455f21-8893377562372406-300x125.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-db3ca5d515455f21-8893377562372406-768x319.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-db3ca5d515455f21-8893377562372406-1536x638.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-db3ca5d515455f21-8893377562372406.png 1734w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">15-minute chart of USDX\/WBNB on PancakeSwap. Source: <a href=\"https:\/\/dexscreener.com\/bsc\/0x03326cd950ee88d25a95400c805a4f4c5db9e898\">DEX Screener<\/a>.<\/figcaption><\/figure>\n<p>At the time of writing, the issuer\u2019s team had not commented. Several projects \u2014 Lista <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">DAO<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-pancakeswap-a-uniswap-style-dex-on-binance-smart-chain\">PancakeSwap<\/a> \u2014 issued preliminary statements, saying they were monitoring developments and advising users to check positions involving USDX.<\/p>\n<blockquote class=\"twitter-tweet\" data-media-max-width=\"560\">\n<p lang=\"en\" dir=\"ltr\">Our team is also aware of the situation involving the affected vaults and are monitoring it closely. Please review and monitor your positions involving these vaults on PancakeSwap. We\u2019ll continue to stay updated and share information as needed. <\/p>\n<p>Stay SAFU. <a href=\"https:\/\/t.co\/tHpY2Z0L5J\">https:\/\/t.co\/tHpY2Z0L5J<\/a><\/p>\n<p>\u2014 PancakeSwap (@PancakeSwap) <a href=\"https:\/\/twitter.com\/PancakeSwap\/status\/1986390221664231791?ref_src=twsrc%5Etfw\">November 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Later, Lista DAO launched an emergency vote to enable forced liquidation in the USDX\/USD1 market to minimise potential losses.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udce2 LIP 022 \u2014 Emergency Vote: Enabling Forced Liquidation for USDX Market (re7 vault)<\/p>\n<p>This proposal is being put forward as an emergency one-hour vote, following a request from the vault curator, to enable forced liquidation mechanisms for the USDX\/USD1 market.<br \/>\ud83d\udd39The <a href=\"https:\/\/twitter.com\/Re7Labs?ref_src=twsrc%5Etfw\">@Re7Labs<\/a>\u2026 <a href=\"https:\/\/t.co\/cs9ynd3XOH\">pic.twitter.com\/cs9ynd3XOH<\/a><\/p>\n<p>\u2014 Lista DAO (@lista_dao) <a href=\"https:\/\/twitter.com\/lista_dao\/status\/1986392017589457261?ref_src=twsrc%5Etfw\">November 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The majority <a href=\"https:\/\/x.com\/lista_dao\/status\/1986412273582080136\">voted<\/a> in favour.<\/p>\n<p>Beyond PancakeSwap, USDX also trades on BitMart, <a href=\"https:\/\/forklog.com\/en\/news\/what-is-uniswap-uni\">Uniswap<\/a>, Curve and Balancer. Stable Labs, its issuer, presents itself as a MiCA-compliant issuer of stablecoins and tokenised assets.<\/p>\n<p>In 2024 the company raised $45m at a $275m valuation from NGC, BAI Capital, Generative Ventures and UOB Venture Management. Other backers include Dragonfly Capital and Jeneration Capital.<\/p>\n<p>Amid the depeg, a whale spent 800,000 <a href=\"https:\/\/forklog.com\/en\/news\/what-is-tether-usdt\">USDT<\/a> to buy 933,241 USDX at $0.8572. If the stablecoin returns to its $1 target, the potential gain could be around $135,000, Lookonchain analysts noted.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">USDX has depegged to $0.3887.<\/p>\n<p>Brave whale 0xe454 quickly spent 800K <a href=\"https:\/\/twitter.com\/search?q=%24USDT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDT<\/a> to buy 933,241 <a href=\"https:\/\/twitter.com\/search?q=%24USDX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDX<\/a> at $0.8572 right after noticing the depeg \u2014 adding to the 1.4M <a href=\"https:\/\/twitter.com\/search?q=%24USDX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDX<\/a> he bought a week ago, all submitted for redemption.<\/p>\n<p>If redemption succeeds, he&#8217;ll net around $135K in profit.<\/p>\n<p>But\u2026 <a href=\"https:\/\/t.co\/bQ1Pv6Wdw3\">pic.twitter.com\/bQ1Pv6Wdw3<\/a><\/p>\n<p>\u2014 Lookonchain (@lookonchain) <a href=\"https:\/\/twitter.com\/lookonchain\/status\/1986471765376442699?ref_src=twsrc%5Etfw\">November 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 class=\"wp-block-heading\">Possible causes<\/h2>\n<p>Some analysts <a href=\"https:\/\/x.com\/robdogeth\/status\/1986511483451359307\">suggested<\/a> that the USDX depeg is linked to the fallout from the <a href=\"https:\/\/forklog.com\/en\/news\/balancer-defi-protocol-suffers-128m-hack\">hack of the Balancer DeFi protocol<\/a>, which lost $128m. The attack may have triggered a cascade of liquidations of Stable Labs\u2019 hedged positions.<\/p>\n<p>A researcher at Hyperithm, known as Min, noted that the stablecoin\u2019s portfolio composition had not been updated for more than two months.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">USDX claims to generate yield through delta-neutral and U.S. Treasury strategies, but as far as I can tell, their portfolio hasn\u2019t changed in over two months.<\/p>\n<p>Are they actually doing any active management?<\/p>\n<p>At one point, they even had weird alts like BANANA31 in the portfolio. <a href=\"https:\/\/t.co\/KDqSqZF5yD\">pic.twitter.com\/KDqSqZF5yD<\/a><\/p>\n<p>\u2014 Min l Hyperithm (@ingerxyz) <a href=\"https:\/\/twitter.com\/ingerxyz\/status\/1986253552587841749?ref_src=twsrc%5Etfw\">November 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script> <\/p>\n<p>A trader known as Arabe Bluechip pointed out that early in the week a wallet associated with the Stable Labs founder began using USDX and its sUSDX version as collateral to borrow other coins, including <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-usdc-stablecoin\">USDC<\/a>, USDT and USD1 via Euler, Lista and Silo.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Perhaps <a href=\"https:\/\/twitter.com\/StablesLabs?ref_src=twsrc%5Etfw\">@StablesLabs<\/a> can clarify why founder Flex Yang\u2019s wallet is linked to these addresses <\/p>\n<p>It appears that all USDC \/ USD1 \/ USDT liquidity was drained by sUSDX \/ USDX as collateral in Euler \/ Lista \/ Silo, paying 100% borrow interest with seemingly no intent to repay.\u2026<\/p>\n<p>\u2014 Arabe \u20bfluechip (@arabebluechip) <a href=\"https:\/\/twitter.com\/arabebluechip\/status\/1985873287780483226?ref_src=twsrc%5Etfw\">November 5, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The annualised interest rate on those positions reached 100%, leading Arabe Bluechip to suspect the borrower had no intention of repaying.<\/p>\n<h2 class=\"wp-block-heading\">Fallout from the Stream Finance hack<\/h2>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentralised-finance-defi\">DeFi<\/a> protocol Elixir said it would stop supporting its deUSD stablecoin after the Stream Finance hack.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Elixir has worked tirelessly over the previous 48 hours and has successfully processed redemptions of 80% of all deUSD holders thus far (not including Stream).<\/p>\n<p>As it stands now, Stream holds roughly 90% of the deUSD supply (~$75m), while Elixir holds a similar proportion of its\u2026<\/p>\n<p>\u2014 Elixir (@elixir) <a href=\"https:\/\/twitter.com\/elixir\/status\/1986443495351927257?ref_src=twsrc%5Etfw\">November 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to the latest update, the team has already redeemed about 80% of coins from holders at a 1:1 rate in USDC.<\/p>\n<p>Stream Finance\u2019s developers suspended withdrawals and deposits on November 4 after a $93m hack. The protocol\u2019s total debt to creditors exceeds $285m, $68m of which is owed to Elixir.<\/p>\n<p>Launched in mid-2024, deUSD was pitched as an alternative to Ethena Labs\u2019 synthetic dollar, USDe. Stream Finance used the coin to back its own xUSD stablecoin, which depegged after the hack and crashed to $0.20.<\/p>\n<p>At the time of writing, the stablecoin had recovered to $0.17, according to <a href=\"https:\/\/www.coingecko.com\/en\/coins\/staked-stream-usd\">CoinGecko<\/a>.<\/p>\n<p>Its collapse set off a chain reaction, hitting Elixir\u2019s asset in particular.<\/p>\n<p>In September, the bitcoin-backed \u201cstablecoin\u201d Yala <a href=\"https:\/\/forklog.com\/en\/news\/yala-team-explains-stablecoins-plunge-to-0-3\">suffered a depeg<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On November 6, the synthetic \u201cstablecoin\u201d USDX from Stable Labs lost its US dollar peg, falling more than 60% in a day to $0.30.<\/p>\n","protected":false},"author":1,"featured_media":90754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Elixir\u2019s deUSD also lost its US dollar peg.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,807],"class_list":["post-90753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"1277","promo_type":"1","layout_type":"1","short_excerpt":"Elixir\u2019s deUSD also lost its US dollar peg.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=90753"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90753\/revisions"}],"predecessor-version":[{"id":90755,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90753\/revisions\/90755"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/90754"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=90753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=90753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=90753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}