Synthetix officially launches sUSD 420 Pool to tackle ongoing stablecoin issues
Synthetix has launched a new liquidity initiative aimed at stabilizing its algorithmic stablecoin sUSD, which has been trading well below its intended $1 peg. The “sUSD 420 Pool,”
Announced by founder Kain Warwick on X , the pool will reward participants with 5 million SNX tokens over 12 months in an attempt to curb the effects of the ongoing depeg.
sUSD dropped to $0.8224 as of April 18, up over 7% in 24 hours, according to CoinGecko. It was trading as low as $0.63.
The decline has been linked to recent protocol changes under Synthetix Improvement Proposal 420, which introduced a protocol-owned staking pool and lowered the collateralization ratio for minting sUSD from 500% to 200%.
This change has caused a significant increase in sUSD supply, outpacing demand and leading to imbalances in decentralized exchange pools like Curve, where sUSD now makes up over 90% of some liquidity pairs.
Locked and staked SNX
The new 420 Pool requires SNX stakers to lock their sUSD for a year to earn daily SNX rewards. Those rewards will also be locked and vest over three months after the campaign ends.
While official front-end support for the program launches next week, early access is available via Synthetix’s Discord.
Synthetix has called the current phase a “transition period” and plans to support sUSD through additional incentives and new use cases, including the upcoming Snaxchain initiative.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
India's High Court orders block of Proton Mail encrypted email service
ProShares sets a launch date for futures-based XRP ETF, clarifying misleading reports
Share link:In this post: According to a recent SEC filing, ProShares plans to launch its XRP futures ETF on May 14, though final approval is still pending. Confusion over an earlier filing led some to wrongly report an April 30 launch, briefly causing a spike in XRP’s price. More crypto ETF decisions, including spot XRP ETFs, are expected by October, as the SEC faces pressure under new pro-crypto leadership.

Scammers impersonate Ledger and send physical letters in an attempt to steal users’ mnemonics
Trending news
MoreCrypto prices
More








