Solstice protocol users holding significant USX positions face depeg risks when farming flares. For those heavily exposed to this position, understanding hedging options becomes essential.

OpenCover provides USX depeg protection at 0.35% monthly fee, which translates to 4.2% annualized cost. This insurance product allows farmers to maintain their yield farming strategy while mitigating downside risk from potential stablecoin depegging events.

However, if you're farming flares through YT (yield tokens), the depeg protection becomes less relevant since these positions already carry liquidation risk that could result in total loss regardless of USX stability. In such high-risk farming scenarios, the insurance layer provides limited additional protection compared to the underlying risks already present in the strategy.