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Synthetix’s sUSD stablecoin has fallen to a new low of $0.66, over 30% below its $1 peg, raising concerns about the protocol’s stability. Founder Kain Warwick attributes the volatility to ongoing upgrades, while analysts warn of cascading risks due to thin liquidity.
- Synthetix’s SIP-420 upgrade reduced collateralization from 750% to 200%, weakening sUSD’s peg stability.
- Liquidity is thin, with AMM pools heavily sUSD-weighted, amplifying price swings.
- Founder Kain Warwick is buying SNX despite warnings of further volatility before recovery.
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