COINOTAG News reports on April 17 that Synthetix’s USD-pegged stablecoin, sUSD, has faced a significant de-pegging, falling by 9.9% in just one day to trade at $0.77, resulting in a market capitalization decrease to $24.6 million. This decline coincides with founder Kain’s announcement regarding the ongoing transition of the sUSD peg restoration mechanism, where 90% of ETH holdings were sold to boost SNX assets.
Prior reports highlighted that the recent de-pegging of sUSD was not attributed to fiscal instability or failure in operational models, but rather stemmed from SIP-420. This new governing proposal alters the traditional minting process for SNX stakers, shifting their role to delegating funds into a unified pool instead of managing individual debt, thereby eliminating direct incentives for stakers to buy sUSD at discounted prices for debt repayment. The Synthetix team is addressing these challenges by exploring new demand pathways, including partnerships with platforms like Aave and Ethena, alongside enhancements to the Curve incentive system.
Source: https://en.coinotag.com/breakingnews/synthetixs-susd-plummets-to-0-77-amid-de-pegging-and-transition-to-sip-420/