While SUSD continues to act under the intended PEG of $ 1, Synthetix founder Kain Warwick has encouraged strikers to perform and restore stability before stricter measures are implemented.
The Depeg has been stretched for weeks, caused by recent changes to how SUSD is published and supported. Although the team has already rolled out a new liquidity initiative to tackle the problem, the reaction has not been enough to turn the tide so far.
In a thread of April 21 on X, the Synthetix founder insisted SNX strikers to take action through his new bet mechanism and warns that the current goodwill-driven approach can soon take place for harder enforcement.
The new initiative, called the 420 Pool, offers SNX holders the chance to earn a share of 5 million SNX tokens by locking their sus for 12 months. Warwick is in the field of this long -term obligation to absorb excess offer and to illuminate the sales pressure that susd drags away from his PEG.
Warwick said that the current process, where SUSD is sent directly to a contract, is “extremely not ideal”, but suggested that as soon as the user interface goes live in the coming days, the participation of Stakker will be closely viewed.
If the involvement remains low, he warned that the protocol can move from stimuli to enforcement.
“We have tried nothing that did not work, now we have tried the root and it has worked a bit, but I book a judgment. I think we all know how much I like the stick, so if you think you’ll get away with not eating the carrot, I have some bad news for you,” Warwick said.
SUSD is an algorithmic stablecoin issued via the Synthetix protocol, supported by the Native SNX token of the platform. In contrast to Fiat-collateral Stablecoins, SUSD maintains his PEG with the help of crypto-based collateral and priceFeeds from kin link oracles, making it more sensitive to changes in protocol mechanics.
The SUSD Depeg can be traced back to an important protocol update, known as SIP-420. Introduced to stimulate the capital efficiency, it reduced the collapse ratio for lubricating SUSD from 500% to 200% and moved to a shared stake pool with protocol.
Although SIP-420 made it easier to mure SUSD, it also flooded the market faster than the question was able to catch up, lashed liquidity balance and pushed the stablecoin far below $ 1. At the time of the press it was traded at $ 0.7714 and fell by 4.2%in the last 24 hours.
Warwick believes that the solution lies in mobilizing existing capital within the ecosystem.
“The collective capacity of SNX strikers is, if several billions, the money to resolve this is that we just have to call the stimuli. We will slowly and repeat, but I am convinced that we will solve this and go back to the construction of Perps on L1,” he added.
Susd is not the first stablecoin that loses his pen. In March 2023, the USDC fell from Circle short to $ 0.87 after he had revealed that $ 3.3 billion of his reserves was tied in the collapsed Silicon Valley Bank.
More recently, Tusd lost his PEG in January to the US dollar in the midst of reports that his issuent did not immediately release a colland audit.
