{"id":23171,"date":"2025-04-18T13:01:05","date_gmt":"2025-04-18T10:01:05","guid":{"rendered":"https:\/\/forklog.com\/en\/susd-stablecoin-dips-below-0-7-synthetix-offers-explanation\/"},"modified":"2025-04-18T13:01:05","modified_gmt":"2025-04-18T10:01:05","slug":"susd-stablecoin-dips-below-0-7-synthetix-offers-explanation","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/susd-stablecoin-dips-below-0-7-synthetix-offers-explanation\/","title":{"rendered":"sUSD Stablecoin Dips Below $0.7: Synthetix Offers Explanation"},"content":{"rendered":"<p>On April 18, the price of the sUSD stablecoin from the DeFi synthetic asset platform <a href=\"https:\/\/hub.forklog.com\/proekt-dlya-sozdaniya-sinteticheskih-aktivov-synthetix\/\">Synthetix<\/a> plummeted to a local low of around $0.68. At the time of writing, the coin had recovered to $0.73.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/sUSD-Price-SUSD-Live-Price-Chart-Market-Cap-News-Today-CoinGecko-Google-Chrome-1024x512.jpg\" alt=\"sUSD-Price-SUSD-Live-Price-Chart-Market-Cap-News-Today-CoinGecko-Google-Chrome\" class=\"wp-image-256984\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/sUSD-Price-SUSD-Live-Price-Chart-Market-Cap-News-Today-CoinGecko-Google-Chrome-1024x512.jpg 1024w, https:\/\/forklog.com\/wp-content\/uploads\/sUSD-Price-SUSD-Live-Price-Chart-Market-Cap-News-Today-CoinGecko-Google-Chrome-300x150.jpg 300w, https:\/\/forklog.com\/wp-content\/uploads\/sUSD-Price-SUSD-Live-Price-Chart-Market-Cap-News-Today-CoinGecko-Google-Chrome-768x384.jpg 768w, https:\/\/forklog.com\/wp-content\/uploads\/sUSD-Price-SUSD-Live-Price-Chart-Market-Cap-News-Today-CoinGecko-Google-Chrome.jpg 1281w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/www.coingecko.com\/en\/coins\/susd\">CoinGecko<\/a>.<\/figcaption><\/figure>\n<p>The asset has repeatedly <a href=\"https:\/\/forklog.com\/en\/news\/major-liquidity-provider-disrupts-susd-peg\">lost its peg to the dollar<\/a> throughout its existence. In March 2020, the price of sUSD fell to $0.43.<\/p>\n<p>The issuance of the &#8220;synthetic stablecoin&#8221; is backed by SNX tokens locked in staking.\u00a0<\/p>\n<p>A Synthetix representative told <a href=\"https:\/\/cointelegraph.com\/news\/synthetic-usd-stablecoin-fall-new-lows-depeg\">Cointelegraph<\/a> that the volatility experienced by the stablecoin since the beginning of the year is linked to the implementation of <span data-descr=\"Synthetix Improvement Proposal\" class=\"old_tooltip\">SIP-420<\/span>. The proposal shifted debt risks from stakers to the protocol itself.<\/p>\n<p>According to Okto&#8217;s Growth Director Minal Thukral, the introduction of the new structure increased capital efficiency but dismantled an important stabilization mechanism for sUSD.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">sUSD, the core stablecoin used across synthetix markets, is facing a serious and prolonged depeg.<\/p>\n<p>what\u2019s causing it, and is this just a bad patch or the start of a bigger breakdown?<\/p>\n<p>quick breakdown:<\/p>\n<p>sUSD is an algo-stable backed by staked SNX.<br \/>after sip 420, the minting model\u2026 <a href=\"https:\/\/t.co\/NONcLhAHEx\">pic.twitter.com\/NONcLhAHEx<\/a><\/p>\n<p>\u2014 Minal Thukral (@minal_thukral) <a href=\"https:\/\/twitter.com\/minal_thukral\/status\/1913099838847115703?ref_src=twsrc%5Etfw\">April 18, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The SIP-420 system reduced the collateral ratio from 450% to 200% and introduced a 12-month delay for old debts. Stakers lost the incentive to repay them and buy cheap stablecoins, the expert noted.\u00a0<\/p>\n<p>This, he explained, led to selling pressure. Thukral believes the main risk for sUSD lies in its SNX-backed structure\u2014if the token&#8217;s price falls, the collateral diminishes. As market panic grows, users rush to exit the asset, causing a cascading effect.<\/p>\n<p>The expert noted that the Synthetix team has capital in other coins like USDC and OP, which can be used to maintain sUSD&#8217;s stability, and they have ample experience in overcoming stablecoin crises. However, the current situation is concerning.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Make no mistake, everything is fragile. If SNX continues to fall and trust cracks, there is a real risk of a deeper and sharper collapse,&#8221; Thukral stated.<\/p>\n<\/blockquote>\n<p>The platform&#8217;s token quotes have <a href=\"https:\/\/www.coingecko.com\/en\/coins\/synthetix-network-token\">dropped 77%<\/a> over the year, with a 25% decline in the last 30 days.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Personally, I think sUSD will eventually recover closer to 1:1, but not without extremely high volatility initially. The longer the depeg continues, the more doubts it raises about the entire Synthetix ecosystem,&#8221; the expert concluded.<\/p>\n<\/blockquote>\n<p>Former <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> head Gary Gensler <a href=\"https:\/\/forklog.com\/en\/news\/former-sec-chair-declares-bitcoin-the-sole-worthwhile-crypto-asset\">called<\/a> Bitcoin the only worthwhile crypto asset, while most other tokens exist solely due to speculative expectations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On April 18, the price of the sUSD stablecoin from the DeFi synthetic asset platform Synthetix plummeted to a local low of around $0.68. At the time of writing, the coin had recovered to $0.73. Data: CoinGecko. The asset has repeatedly lost its peg to the dollar throughout its existence. In March 2020, the price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,807,1322],"class_list":["post-23171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-stablecoins","tag-synthetix"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=23171"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23171\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/23170"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=23171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=23171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=23171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}