Solana News Today: Solstice Closes Solana’s Yield Gap with $160M Stablecoin and 21.5% Returns

Solstice Finance, a decentralized finance protocol developed by Solstice Labs AG and backed by $1 billion digital asset investment firm Deus X Capital, has officially launched its Solana-native stablecoin, USX, alongside its YieldVault program. The protocol’s stablecoin is designed to offer institutional-grade yields to users, with over $160 million in total value locked (TVL) at launch. USX is backed 1:1 by stable collateral and features real-time proof of reserves via Chainlink, ensuring transparency and security. The stablecoin aims to address a gap in the Solana ecosystem, where existing stablecoins are often bridged to other chains for yield generation.

YieldVault, Solstice’s flagship product, generates returns through delta-neutral trading strategies, which have historically delivered a 13.96% net internal rate of return (IRR) with no recorded monthly losses since inception. The program’s track record includes 21.5% performance in 2024. By locking USX into YieldVault, users receive eUSX, which represents their share of the underlying net asset value of the protocol’s yield-generating fund. This structure democratizes access to institutional-grade returns, aligning with Solana’s ethos of fast, low-cost transactions and composability.

The launch is supported by major institutional investors, including Galaxy Digital, MEV Capital, Bitcoin Suisse, Auros, and Deus X Capital. These backers have contributed to the initial liquidity and capitalization of the protocol, positioning USX as a competitive alternative to legacy stablecoins. The Solana Foundation has also endorsed the initiative, with President Lily Liu noting that Solstice’s innovations unlock new opportunities for builders and investors within the ecosystem.

Solstice’s team comprises over 30 crypto and traditional finance veterans, with experience from firms such as Solana Labs, Coinbase, Galaxy Digital, and BlackRock. The protocol’s infrastructure is further strengthened by partnerships with Chainlink for cross-chain interoperability and custody solutions from Ceffu and Copper. These collaborations ensure secure, off-exchange settlement options for institutional traders while maintaining transparency through Chainlink’s Proof of Reserves.

Looking ahead, Solstice plans to expand USX’s utility through integrations with 30+ partners and the introduction of its native utility token, SLX. The token will be distributed via a community-first model, emphasizing alignment between protocol success and user incentives. With growing institutional adoption of Solana’s infrastructure, USX aims to solidify its role as a foundational asset for permissionless yield generation, bridging traditional finance (TradFi) returns with decentralized finance (DeFi) accessibility.