• sUSD lost its peg temporarily due to a system transition impacting its debt balancing mechanism.
  • Synthetix is deploying incentives and new tools to restore sUSD stability and boost participation.

Synthetix’s sUSD stablecoin has been making waves. In the past few days, its value has suddenly plummeted from $1 to around $0.85. Most DeFi users are wondering what’s behind this drop? In the stablecoin world, losing that much peg is no small feat—like digital change, sUSD should always be close to $1. But in reality, at the time of writing, it’s still down 6.51%.

Of course, this isn’t without reason. Synthetix founder Kain Warwick explained that the drop in sUSD’s value has something to do with a system update.

The protocol is preparing to move to a new version—called V3—that completely changes the way its debt management works. The old version, which had been keeping sUSD stable, was deactivated as part of this transition. Well, during that transition, the price of sUSD became unstable.

🚨JUST IN: SYNTHETIX PROTOCOL'S SYNTHETIC USD, SUSD, DEPEGS TO $0.85

— BSCN Headlines (@BSCNheadlines) April 10, 2025

sUSD Still Backed by Real Assets

While this may have caused some concern, Warwick is quick to stress one important thing: sUSD is not an algorithmic stablecoin with no collateral. It’s not UST 2.0. It’s still backed by assets like ETH and SNX, and it still has value behind it.

The only problem is that the price balancing mechanism is temporarily off. So it’s more like a car that had its engine replaced in the middle of the highway—a bit wobbly, but not necessarily going to crash.

On the other hand, Synthetix is ​​not sitting idle either. They are trying various ways to restore sUSD’s liquidity and price balance, including through a new incentive program. Starting April 10, 2025, the reward program on the Infinex platform has been extended for six weeks.

Users who deposit sUSD can get a share of 16,000 OP tokens every week, plus the chance to win other on-chain prizes. The hope is that more users will be interested in jumping in, so that demand for sUSD will increase again and its value will get back on track.

Synthetix Accounts Aim for Simpler Access

If you look at it, Synthetix has been really busy lately. Last January, they announced that they would stop the V3 perps market on Arbitrum and move their full focus to the Base network. The reason was to simplify development and make the system more efficient.

Not stopping there, on April 8th, they also launched a new feature called “Synthetix Accounts.” This is a smart wallet that they say can allow users to trade perps on-chain without gas fees and without the need for transaction confirmation.

You can register using just an email or Google account. It’s simple, but you could say it’s quite bold, considering the crypto culture which is usually anti-email and anti-centralization. But yeah, who knows, this might be what makes new users want to try.

SNX Holds Steady Amid sUSD Woes

Although sUSD slipped, Synthetix’s main token, SNX, actually rose slightly. At the time of writing, the token is swapped hands at about $0.6313, up 4.59% over the last 24 hours.

This increase has pushed SNX’s market cap to surpass the $214 million mark. This means that despite the pressure on the stablecoin side, some investors still have faith in the project—or at least they see an opportunity to buy at a low price.