Synthetix’s sUSD stablecoin continues fall after depeg, tapping $0.68

The Synthetix protocol’s native stablecoin, Synthetix USD (SUSD), has slipped further away from its US dollar peg, reaching new all-time lows under $0.70. 

However, the firm reiterates that this isn’t the first time the asset has been under significant stress, and several risk measures are in place.

“Synthetix and sUSD have weathered multiple bear markets and periods of stablecoin volatility; this is not the first resilience test,” a spokesperson from Synthetix told Cointelegraph.

sUSD is a crypto-collateralized stablecoin. Users lock up SNX tokens to mint sUSD, making its stability highly dependent on the market value of Synthetix (SNX). 

At the time of publication, sUSD (SUSD) is trading at $0.70, 30% below its intended 1:1 peg with the US dollar, according to CoinMarketCap data.

During the same period, SNX has held relatively steady, dipping just 1.08% over the past week, trading at $0.63. However, from a broader view of the overall crypto market downturn, SNX has fallen approximately 26% over the past 30 days.

The spokesperson explained that sUSD’s short-term volatility is driven by “structural shifts” after the SIP-420 launch, a proposal that shifts debt risk from stakers to the protocol itself. 

They explained that the firm has short, medium, and long-term plans to mitigate the risks.

In the short term, Synthetix said it will continue supporting liquidity for sUSD through Curve pools and deposit campaigns on its derivatives platform, Infinex.

For mid-term measures, Synthetix has introduced “simple debt-free” SNX staking that it says will “encourage individual debt repayment.”

Over the long term, the firm says it will make capital efficiency changes through the 420 Pool, take over protocol-level management of sUSD supply, and introduce new “adoption-focused mechanisms” across Synthetix products.

Related: Crypto in a bear market, rebound likely in Q3 — Coinbase

Synthetix founder Kain Warwick explained on April 2 that the volatility is largely due to the primary driver of sUSD buying having been removed. “New mechanisms are being introduced, but in this transition, there will be some volatility,” Warwick said in an X post.

“It is worth pointing out that sUSD is not an algo stable, it is a pure crypto collateralized stable, the peg can and does drift, but there are mechanisms to push it back in line if it goes above or below the peg,” he added.

On April 10, Cointelegraph reported that the asset has faced persistent instability since the start of 2025. On Jan. 1, sUSD dropped to $0.96 and only rebounded to $0.99 in early February. Prices continued to fluctuate through February before stabilizing in March. 

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