Synthetix Launches sUSD 420 Pool to Stabilize sUSD
synthetix has introduced a new liquidity program to stabilize its algorithmic stablecoin, sUSD. The initiative, called the “sUSD 420 Pool,” aims to counteract the depegging of sUSD, which has been trading below its $1 target.
Announced by Synthetix founder Kain Warwick, the pool will distribute 5 million SNX tokens over 12 months to participants.This move comes as sUSDS value has dropped to $0.8224, a 7% increase from its lowest point of $0.63.
The decline is linked to recent protocol changes under Synthetix Improvement Proposal 420. These changes included a new protocol-owned staking pool and a reduced collateralization ratio for minting sUSD from 500% to 200%. This led to an increase in sUSD supply, outpacing demand and causing imbalances in decentralized exchange pools like Curve.
The sUSD 420 Pool requires SNX stakers to lock their sUSD for a year to earn daily SNX rewards. These rewards will be locked and vest over three months after the campaign ends. early access is available via Synthetix’s Discord.
Synthetix views this as a transition period and plans to support sUSD through additional incentives and new use cases, including the upcoming Snaxchain initiative.
