"Synthetix sUSD, Unstable Dollar Peg... Could Be a Side Effect of Recent Update"

Synthetix (SNX)'s stablecoin sUSD has deviated from its $1 price, raising concerns that the recently implemented structural technical overhaul is causing market confusion.

On the 11th, cryptocurrency research media Parsec analyzed, "The recent de-pegging of sUSD may not be due to technical flaws or bad debt, but rather the impact of the recently introduced SIP-420." On this day, the price of sUSD was trading at $0.8988, up 6.35% from the previous day, according to CoinMarketCap.

The recently introduced SIP-420 involves a shift from the previous method where individual stakers directly issued sUSD and were responsible for the debt, to a protocol-owned pooled staking structure (420 Pool). However, there are concerns that in a structure where stablecoins are issued with joint collateral, individual stakers have no incentive to clear debt through bargain purchases even if debt arises.

Parsec stated, "The recently introduced SIP-420 has removed the concept of individual debt. This had effects such as lowering the collateral ratio and improving user experience (UX)," but also analyzed, "Subsequently, the sUSD price defense mechanism was unintentionally weakened."

Meanwhile, Synthetix plans to secure demand through integration with external platforms like Aave (AAVE) and Athena (ENA), and to expand sUSD demand by strengthening incentives through collaborations with Curve (CRV).