Synthetix Enhances sUSD Stability Measures Before Mainnet Perps Debut
Synthetix Implements SCCP-409 Protocol Update to Strengthen sUSD Stablecoin's Peg
On May 30, Synthetix enacted the SCCP-409 update to restore the peg of its sUSD stablecoin to the $1.00 target. This update involves a significant increase in staking requirements for legacy stakers during the ongoing debt jubilee. The new requirements, effective from June 2, 23:59 UTC, stipulate that all SNX holders with debt must stake 20% of their original debt in sUSD, doubling the previous threshold of 10%.
The debt jubilee, introduced under SIP-420, aimed to alleviate historical debt burdens. However, its effectiveness was hampered by stakers who sold their sUSD holdings. The updated staking requirements target more committed protocol participation and deter speculative or reckless activity. Stakers must deposit sUSD to the 420 Pool.
The protocol's updated strategy includes treasury buybacks, targeted liquidity incentives, and the Infinex campaign. These measures have already lifted sUSD's value from a low of $0.70 to near $0.96. The final push to reach the $1.00 mark is now underway.
The sUSD peg upgrade also introduces the 420 Pool as Synthetix's central staking mechanism, replacing the legacy solo staking system. The new pool offers a protocol-managed environment with no collateral ratio, liquidations, or manual debt management. SNX holders can now stake directly and earn yields from both Synthetix and its external integrations.
With the sUSD peg nearing full restoration, Synthetix is shifting its focus towards future deployments. The upcoming launch of v4 perpetuals on Ethereum Mainnet marks a new era of high-performance trading, building on the repegged sUSD and the streamlined 420 Pool infrastructure. The phase-out of legacy staking models and the adoption of delegated staking are aimed at reducing friction for token holders, paving the way for greater scalability, broader user participation, and deeper liquidity across Synthetix markets.
- The SCCP-409 update implemented by Synthetix on May 30 aims to strengthen the peg of its sUSD stablecoin, increasing staking requirements for legacy stakers during the ongoing debt jubilee, effective from June 2, requiring 20% of debt in sUSD, double the previous threshold.
- The updated staking requirements in the SCCP-409 protocol are geared towards more committed protocol participation and deterring speculative or reckless activity, as stakers must deposit sUSD to the 420 Pool.
- The protocol's updated strategy includes treasury buybacks, targeted liquidity incentives, and the Infinex campaign, which have helped lift sUSD's value from a low of $0.70 to near $0.96, with the final push to reach the $1.00 mark now underway.
- The sUSD peg upgrade also introduces the 420 Pool as Synthetix's central staking mechanism, replacing the legacy solo staking system, offering a protocol-managed environment with no collateral ratio, liquidations, or manual debt management, allowing SNX holders to earn yields from both Synthetix and its external integrations.
- With the sUSD peg nearing full restoration, Synthetix is shifting its focus towards future deployments, such as the launch of v4 perpetuals on Ethereum Mainnet, marking a new era of high-performance trading, building on the repegged sUSD and the streamlined 420 Pool infrastructure.
- The phase-out of legacy staking models and the adoption of delegated staking in Synthetix are aimed at reducing friction for token holders, paving the way for greater scalability, broader user participation, and deeper liquidity across Synthetix markets, leveraging technology to enhance finance and DeFi trading.