Watch Out: Another Stablecoin Has Lost Its Peg to the Dollar

USDX, the synthetic stablecoin issued by Stable Labs, experienced a serious downturn today, falling below $0.60. It is currently trading around $0.80. The sharp decline in value of USDX, whose circulating supply has reached levels of $683 million, has raised concerns about the potential domino effect it could have on the protocols it is integrated ￰0￱ first reactions came from leading platforms in the ecosystem. On-chain lending platform Lista DAO and Binance-backed decentralized exchange PancakeSwap announced that they were closely monitoring the situation and evaluating risk mitigation ￰1￱ DAO used the following statements in its post on X: “We are closely monitoring MEVCapital’s USDT Vault and Re7Labs’ USD1 ￰2￱ collateral assets, sUSDX and USDX, are facing abnormally high borrowing rates with no redemption activity.” Similarly, PancakeSwap also urged its users to check their positions: We are aware of the affected vaults and are monitoring the situation ￰3￱ review your relevant positions on ￰4￱ will continue to share ￰5￱ News: BREAKING: Binance-Listed Altcoin Announces Plans to Launch Its Own Stablecoin, Price Shows No Positive Reaction USDX is listed with USDT pair on various centralized and decentralized exchanges, including Uniswap, according to CoinMarketCap ￰6￱ Labs has not yet made any statement regarding ￰7￱ company describes itself as a MiCA-compliant stablecoin and tokenization ￰8￱ announced it had raised $45 million in 2024 from investors including NGC, BAI Capital, Generative Ventures, and UOB Venture ￰9￱ Capital and Jeneration Capital are among the company's existing ￰10￱ states that it uses delta-neutral hedging strategies across exchanges to protect against ￰11￱ the exact cause of the crash is unknown, it is believed to have been triggered by the $128 million Balancer attack on November ￰12￱ Labs’ forced liquidations of BTC/ETH short positions allegedly caused massive redemptions, accelerating the collapse of the ￰13￱ the developments, Lista DAO, in collaboration with Re7 Labs, initiated emergency liquidation steps in the USDX/USD1 vault. *This is not investment ￰14￱ Reading: Watch Out: Another Stablecoin Has Lost Its Peg to the Dollar