Solstice Finance Launches USX Stablecoin & YieldVault on Solana

Solstice Finance’s launch represents a strategic move to capture stablecoin value that has been migrating from Solana to other ecosystems in search of better yields. As CEO Ben Nadareski explained, “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 see stables often being bridged to other chains for best-in-class yield – that’s stable TVL leaving our ecosystem to try and earn elsewhere.” This insight drove the development of USX, which maintains the frictionless transaction benefits of traditional stablecoins while providing access to institutional-grade yields native to the Solana protocol.

The timing of this launch coincides with growing institutional interest in Solana’s DeFi ecosystem, with the $160 million in total value locked (TVL) at launch signaling strong market confidence. Backed by Deus X Capital, Galaxy Digital, MEV Capital, Bitcoin Suisse, and Auros, Solstice enters the market with substantial financial backing and industry credibility. Lily Liu, President of the Solana Foundation, emphasized the broader implications, stating that “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.”

USX represents a new category of stablecoin purpose-built for composability, transparency, and native yield generation. The synthetic stablecoin is backed 1:1 by stable collaterals with real-time Proof of Reserves verified through Chainlink, ensuring full transparency of backing assets. This architecture addresses one of the key concerns in the stablecoin market – the need for verifiable collateralization – while maintaining the velocity of capital necessary for efficient DeFi operations.

The YieldVault serves as Solstice’s flagship yield engine, offering institutional-grade returns generated from proven delta-neutral trading strategies. The performance metrics are particularly compelling: the strategy has historically generated a 13.96% Net Internal Rate of Return (IRR) with no recorded month-over-month losses since inception. In 2024 alone, YieldVault achieved 21.5% performance while maintaining zero months of negative returns throughout its three-year track record. This combination of strong returns and consistent performance positions Solstice as a serious contender in the competitive DeFi yield space.

Users access YieldVault by locking their USX into the protocol, receiving eUSX tokens that represent their share of the underlying net asset value of the licensed yield-generating fund. This mechanism democratizes access to sophisticated yield strategies that were previously available only to institutional investors, enabling participants of all sizes – from those managing $5 to $50 million – to benefit from delta-neutral, institutional-grade returns in a transparent and fully permissionless manner.

Solstice Finance’s credibility is bolstered by its institutional backing and experienced team. As a Deus X Enterprise company, Solstice Labs AG benefits from the $1 billion digital asset investment firm’s resources and network. The core team consists of 30+ crypto and traditional finance veterans across 10 countries, with deep experience from leading organizations including Solana Labs, Coinbase, Galaxy Digital, Standard Chartered, Deloitte, UBS, NAB, BlackRock, UXD, and ConsenSys.

This diverse expertise spans both cryptocurrency and traditional finance (TradFi), providing Solstice with the necessary institutional knowledge to navigate regulatory requirements while maintaining the innovative spirit of DeFi. The team’s background in major financial institutions and crypto-native companies positions them uniquely to bridge the gap between traditional finance and decentralized protocols, particularly important given Solstice’s use of a licensed approved manager and fund structure.

Beyond the core protocol, Solstice Labs AG also operates Solstice Staking AG, one of the most trusted infrastructure providers in the industry, securing over $1 billion in assets across 9,000+ validator nodes. This additional operational experience in blockchain infrastructure further strengthens the company’s position in the ecosystem and demonstrates their long-term commitment to building sustainable crypto infrastructure.

Solstice’s immediate focus remains squarely on the Solana ecosystem, with the team currently working with over 30 partners for integration. This ecosystem-first approach aligns with their mission to strengthen Solana’s DeFi landscape rather than pursuing multi-chain expansion. The protocol’s future includes the planned launch of SLX, Solstice’s native utility token, which will follow a community-first distribution model with no venture capital backing to align long-term protocol success with community incentives.

The launch of USX and YieldVault represents a significant milestone in Solana’s maturation as a DeFi ecosystem. By providing native yield-bearing stablecoin capabilities, Solstice addresses a critical infrastructure gap that has seen value flow to other chains. As Nadareski noted, “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.” With their battle-tested strategy, institutional backing, and experienced team, Solstice Finance appears well-positioned to become a cornerstone of Solana’s growing DeFi ecosystem.