Stables Labs USDX isn’t another stablecoin that just holds dollars in a bank account. It doesn’t lock up USDC or cash reserves to stay pegged to $1. Instead, it uses complex trading strategies - called delta-neutral hedging - to keep its value steady. That’s unusual. Most stablecoins rely on collateral. USDX relies on algorithms, market positions, and automated risk management. If you’ve heard of USDT or USDC, think of USDX as their quiet, math-heavy cousin trying to do things differently.
How USDX Stays at $1 Without Holding Dollars
Traditional stablecoins like USDT and USDC are backed by actual U.S. dollars held in bank accounts. DAI uses over-collateralized crypto assets like ETH. USDX does none of that. It’s synthetic. It creates its own stability by balancing long and short positions across crypto markets.
Here’s how it works: When someone mints USDX, they lock up Bitcoin as collateral. But instead of just sitting there, the protocol automatically uses that Bitcoin to open two opposite trades - one long (buying Bitcoin) and one short (betting Bitcoin will fall) - on different exchanges. These trades cancel each other out in terms of price risk. That’s the delta-neutral part. The profit or loss doesn’t come from Bitcoin moving up or down. It comes from small inefficiencies in the market - like funding rates on perpetual futures or basis spreads between spot and futures prices.
These tiny profits, generated over time, are what keep USDX stable. If the system makes money, it reinforces the peg. If it loses money, the protocol draws from a built-in insurance fund. That fund was created during the earlier USDX.Money phase and still exists under Stables Labs. It’s not perfect. During extreme volatility, hedging can fail. But the design is meant to handle normal market swings without needing banks or audits of cash reserves.
The Transition from USDX.Money to Stables Labs
USDX didn’t start as Stables Labs. It began as USDX.Money, launched in 2021 with a different tokenomics model. In 2024, the team rebranded and rebuilt. They introduced USD0x, a new version of the stablecoin with improved mechanics. They also replaced the old X-Points reward system with S-Points - a 1:1 swap that gave users a fresh start.
This transition caused confusion. Some tracking sites like OctoBot Cloud still list USDX with a $673 million market cap and over 674 million tokens in circulation. Others, like CoinGecko, show a price of just $0.01465 and a market cap under $31 million. Why the gap? The answer is likely this: the old USDX.Money token might still be trading on a few exchanges, while the new Stables Labs version is barely live or widely recognized.
It’s a mess. If you’re looking to buy USDX, you could accidentally get the old token - which has almost no value - instead of the new one. There’s no clear public guide telling users how to tell the difference. That’s a major red flag for adoption. Even experienced traders are unsure which version they’re trading.
Why USDX Is Different From USDT, USDC, and DAI
Here’s a quick comparison:
| Feature | USDX | USDT / USDC | DAI |
|---|---|---|---|
| Backing | Bitcoin + delta-neutral hedging | USD bank reserves | Over-collateralized crypto (ETH, etc.) |
| Peg Mechanism | Automated trading strategies | Reserve audits | Collateral liquidations |
| Centralization Risk | Low - no bank dependency | High - regulated banks | Medium - smart contract risk |
| Transparency | On-chain audits, but complex | Regular third-party audits | Public collateral ratios |
| Trading Volume (2024) | $109 (CoinGecko) | $30B+ (USDT) | $1.2B (DAI) |
USDX’s biggest advantage is that it doesn’t need banks. That makes it appealing to users who distrust traditional finance. It’s also designed to be censorship-resistant - you can’t freeze USDX like you can USDC if regulators intervene.
But that’s also its biggest weakness. If the hedging strategy fails during a market crash, there’s no cash cushion. DAI can liquidate collateral. USDT can redeem dollars. USDX has to rely on a trading algorithm holding up under stress. No one’s seen it tested in a real bear market with high volatility.
Who Uses USDX? And Where Can You Trade It?
Very few people use USDX directly. The trading volume on CoinGecko is $109 in 24 hours - that’s less than what a single large trader might move in USDT. There are no Reddit threads, no Trustpilot reviews, no Twitter communities buzzing about it. The only real activity comes from automated trading bots on platforms like Cryptohopper, which integrate USDX for delta-neutral strategies.
If you want to use USDX, you’re not going to buy it on Coinbase or MetaMask. You’d need to find it on lesser-known exchanges like LBank or KuCoin, and even then, you might be trading the wrong version. There’s no official wallet or simple app to mint or stake USDX. The process is buried in protocol documentation, not user guides.
Staking exists - called sUSDX - where holding USDX earns yield from protocol fees. But again, there’s no proof it works reliably. No user testimonials. No screenshots of earnings. Just a technical footnote on a website.
Is USDX Safe? What Are the Risks?
USDX has four big risks:
- Oracle risk: The system needs accurate price feeds to know when to adjust hedges. If an oracle fails or gets hacked, the whole peg could break.
- Counterparty risk: The hedging trades happen on centralized exchanges. If one of those exchanges goes down or freezes funds, the protocol can’t close its positions.
- Volatility risk: During a crypto crash, funding rates can spike. The hedging model might lose money faster than the insurance fund can cover.
- Market confusion risk: The split between old and new tokens makes it easy to lose money by accident.
The team says they use multiple custodians and third-party audits. That’s good. But audits don’t prove the hedging works in practice - only that the code runs as written. And without real-world stress testing, you’re trusting theory, not results.
Should You Use or Invest in USDX?
For most people - no.
If you’re a trader who understands delta-neutral strategies and wants to use USDX as a tool in an automated bot, maybe. But even then, the low liquidity means slippage could eat your profits.
If you’re looking for a stablecoin to hold, send, or use in DeFi - stick with USDC, DAI, or even USDT. They’re proven, liquid, and widely accepted. USDX is still a prototype with no track record.
The idea behind USDX is smart. Making a stablecoin without banks is a worthy goal. But execution matters more than theory. Right now, USDX feels like a brilliant whitepaper that never made it out of the lab. The transition to Stables Labs was poorly communicated. The market data is conflicting. The user base is invisible.
Until the team clears up the token confusion, proves the hedging works under pressure, and builds real liquidity - USDX remains an interesting experiment, not a practical tool.
What’s Next for USDX?
The future depends on three things:
- Clear communication: The team needs to publicly declare which token is the real one - and how to swap from the old to the new.
- Real liquidity: They need to partner with exchanges to list the correct USDX and incentivize trading - not just bots.
- Stress testing: They need to show, not just tell, that the system holds during a crypto crash.
Without those steps, USDX will fade into obscurity, another crypto project that looked promising on paper but couldn’t survive the real world.
Is USDX backed by real dollars?
No. USDX is not backed by U.S. dollars or bank reserves. Instead, it uses Bitcoin as collateral and maintains its $1 peg through automated delta-neutral hedging strategies on crypto exchanges.
What’s the difference between USDX and USDX.Money?
USDX.Money was the original version of the stablecoin, launched in 2021. In 2024, the project rebranded to Stables Labs and introduced a new version called USD0x. The old X-Points system was replaced with S-Points. The old token may still be trading on some exchanges, but it’s not the same as the current USDX from Stables Labs.
Why do different sites show different prices for USDX?
Because there are two versions floating around - the old USDX.Money token (worth pennies) and the new Stables Labs USDX (intended to be $1). Some platforms still track the old token, while others track the new one. This confusion has led to wildly different market cap and price reports.
Can I stake USDX to earn interest?
Yes, through sUSDX - a staked version of USDX that earns protocol yield. But there’s no public data showing how much yield users actually receive, and no user testimonials. The feature exists on paper, but real-world performance is unverified.
Is USDX safer than USDT or USDC?
It’s less centralized, which is good for censorship resistance. But it’s also more complex and untested. USDT and USDC rely on bank reserves - which can be frozen - but they’ve proven stable for years. USDX relies on algorithms that haven’t been tested in a major market crash. So while it’s theoretically more decentralized, it’s not necessarily safer.
Where can I buy USDX?
USDX is listed on smaller exchanges like LBank and KuCoin, but you must be careful. Many platforms still list the old USDX.Money token, which is nearly worthless. Always verify the contract address and check official Stables Labs channels before trading.
