Coinspeaker Synthetix’s sUSD Stablecoin Loses Its Dollar Peg amid Heavy Sell-Off Synthetix’s decentralized stablecoin sUSD has seen an unexpected turn of events after it slipped below its intended $1 peg. The stablecoin, issued through the Synthetix DeFi protocol, fell to as low as $0.92 on Thursday before making a partial recovery to $0.96. The incident was initially identified by Chaos Labs, a risk manager for the Aave lending protocol. According to their analysis, the depeg was triggered when a major liquidity provider withdrew from the sBTC/wBTC liquidity pool on the Curve decentralized exchange. This provider redeemed sUSD via Synthetix’s spot synth redemption and subsequently sold it on Curve, causing a sudden drop in sUSD’s value. Synthetix, a platform enabling the creation of synthetic assets or Synths, mints sUSD as a loan overcollateralized with various crypto assets to maintain a 1:1 peg with the US dol...

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