Synthetix stablecoin sUSD de-anchoring intensifies to $0.7, down 13.9% in 24 hours
On April 18th, the Synthetix USD stablecoin sUSD became more unanchored, dropping 13.9% in 24 hours to $0.7038, with its market capitalization dropping to $22.96 million, according to ticker information. Previously, Synthetix founder Kain said that the sUSD anchoring fix was in transition, and that he had sold 90% of his ETH and added to his position in SNX.
BlockBeats previously reported that the Synthetix stablecoin, sUSD, did not become unanchored due to bad debt or a malfunction in the mechanism, but rather as a side effect of SIP-420, whose introduction means that SNX pledgers are no longer individuals.
The introduction of SIP-420 means that instead of individually minting sUSD and managing their own debt, SNX pledgers are entrusting their funds to a shared pool to achieve the effects of no liquidation and no personal debt; with the debt centralized in a public pool, there is no direct incentive for the pledgers to buy sUSD at a lower price in order to pay off their debt when it trades away from the anchor value, and the once-existing self-regulating defenses have now disappeared.
The Synthetix team has indicated that it is in the process of creating new demand channels, such as integrating with Aave and Ethena and strengthening Curve incentives.