A new one has been added to the stablecoins that have lost their equivalence with the US dollar. This time, the name was USDX, which has a market cap of $77 million, according to CoinGecko data.
USDX, the stablecoin of the Kava Network ecosystem and normally worth 1 US dollar, is at the time of writing. from $0.66 is changing hands.
It is not known why the USDX has lost value against the US dollar. Unlike stablecoins like UST in the Terra ecosystem, USDX an algorithmic stablecoin not. Instead, USDX can circulate as debt, backed by collateral.
Statements made by the Kava Labs team, as well as the crisis in USDX. Linked to TerraUSD (UST) indicates that it might. This is because some of the USDX in circulation the collateral was in UST.
Within one week of UST more than 90 percent depreciation The resulting liquidations also dragged down the value of USDX.
Scott Stuart, CEO of Kava Labs, emphasized that USDX will return to normal with the following statement:
“USDX and UST are not one. After the UST exits the system, parity with USDX (between the US dollar) is expected to be restored.”