USDX

Kava's USDX once anchored the Cosmos-based lending network, minted as a crypto-collateralized dollar through the protocol's CDP module against assets like KAVA, bitcoin and ether. Its weakness was the collateral basket: USDX had accepted Terra's UST, and when that algorithmic stablecoin imploded in May 2022, the contagion dragged USDX down with it. The token fell as low as roughly 55 cents and traded near 65 cents, far under its dollar target, after having carried a market value above 100 million dollars. Kava removed UST from minting and insisted USDX was not itself algorithmic, but the peg never durably recovered and the CDP model was ultimately wound down. Today USDX is treated as defunct: there is no reliable par redemption and the token no longer functions as a dependable dollar. It stands as one of the many casualties of the Terra collapse.