Davide
@0xdavide
✘The depeg situation on sUSD (algorithmic overcollateralized stablecoin) may seem similar to the crash that completely collapsed UST-LUNA but there are substantial differences. First of all, keep in mind that sUSD maintains the peg through supply/demand and is overcollateralized by SNX (now 200%, UST with LUNA 100%). sUSD would no longer be covered if SNX continues to fall. The downward pressure depends substantially on the market situation and the migration of staking to Pool420 (for the moment there are no more incentives to buy sUSD and burn debt). In general, the situation is much more manageable than Terra because sUSD in circulation are about 60M compared to the 20B of UST. Synthetix treasury holds 50% of the debt (30M) + another 15M from LP, ETH, SNX and OP token. Spartan Council and the Synthetix DAO are monitoring the situation without "manual" interventions that will be taken into consideration if SNX continues to fall and sUSD to depeg (buyback modules, burn, integrations, etc).
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Davide
@0xdavide
New 420 pool: • Lowered collateral ratio to 200% • Removed liquidations • Debt-free Stakers (burn) • Minted 2.5x more sUSD per SNX • Automated sUSD Management in DeFi Essentially this new pool removed incentives to buy sUSD to cover and burn debt. Debt is present in the pool, not in individual stakers (hey it would have been great to pay off debt with this strong depeg). There is still no reason to buy sUSD (other than speculative reasons) for this...sUSD depeg. The goal is to make SNX staking easier and provide stakers with “real yield” using sUSD in DeFi (Ethena, Aave, Curve, etc) through liquidity, farming and RWA strategies. I believe that over time sUSD will return to the peg for the reasons I have already explained (product active since 2018, Warwich brothers who are a guarantee in the crypto world, natural depeg forced by migration, treasury that could entirely cover the debt).
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Luna
@jei
SNX will make it.
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