🔍 sUSD, issued by Synthetix, fell below its $1.00 value, dropping to a level of $0.83. This marks the second depeg event in the past year and raises concerns about the issuer's stability mechanisms.
📉 Excess Supply Triggers Peg Instability: The recent drop in sUSD is linked to excess supply entering the market. In Curve, sUSD makes up 75% of the DAI-USDC-USDT-sUSD pool, indicating that traders are actively liquidating the asset.
The Synthetix team is working to stabilize the peg with new mechanisms. Founder Kain Warwick noted that volatility should be expected during the transition process.
The current price of sUSD is $0.8593, and it has also experienced a decline against Ethereum and Bitcoin. However, Warwick emphasizes that the peg is not entering a death spiral.
📉 Excess Supply Triggers Peg Instability: The recent drop in sUSD is linked to excess supply entering the market. In Curve, sUSD makes up 75% of the DAI-USDC-USDT-sUSD pool, indicating that traders are actively liquidating the asset.
The Synthetix team is working to stabilize the peg with new mechanisms. Founder Kain Warwick noted that volatility should be expected during the transition process.
The current price of sUSD is $0.8593, and it has also experienced a decline against Ethereum and Bitcoin. However, Warwick emphasizes that the peg is not entering a death spiral.