From Cointelegraph

April 21, 2025 02:18 AM:

Synthetix founder Kain Warwick has implemented a new staking mechanism to address sUSD depeg, threatening stakers with consequences if they don’t participate. The sUSD 420 Pool rewards participants with 5 million SNX tokens over 12 months for locking their sUSD. Warwick emphasizes stakers’ responsibility in fixing the depeg issue.

Synthetix’s stablecoin, sUSD, faces instability with its value dropping to $0.68 on April 18, down 31% from its intended 1:1 peg with the US dollar. As of April 21, it’s trading around $0.77. SNX stakers are crucial in resolving the depeg situation, with Warwick confident in finding a solution through incentivizing stakers.

A Synthetix spokesperson attributed sUSD’s short-term volatility to shifts after the SIP-420 launch. Other stablecoins like USDC and TrueUSD have depegged in the past but recovered. The stablecoin market’s capitalization has grown, surpassing $200 billion in early 2025, with total stablecoin volumes exceeding Visa and Mastercard combined by 7.7%.

Justin Sun-linked stablecoin TrueUSD depegged in January after reports of holders cashing out for competitor stablecoin Tether. Stablecoin market capitalization has surpassed $200 billion, with total volumes exceeding Visa and Mastercard combined by 7.7%. Stakers play a key role in fixing sUSD depeg, with Warwick confident in resolving the issue through incentives.

Read more at Cointelegraph: Synthetix founder threatens SNX stakers with ‘the stick’ to fix SUSD depeg