The Synthetix protocol’s native stablecoin, Synthetix USD (SUSD), has slipped further away from its US dollar peg, reaching new all-time lows under $0.70.
However, the firm reiterates that this isn’t the first time the asset has been under significant stress, and several risk measures are in place.
“Synthetix and sUSD have weathered multiple bear markets and periods of stablecoin volatility; this is not the first resilience test,” a spokesperson from Synthetix told Cointelegraph.
SUSD down almost 31% from its intended 1:1 peg
sUSD is a crypto-collateralized stablecoin. Users lock up SNX tokens to mint sUSD, making its stability highly dependent on the market value of Synthetix (SNX).
At the time of publication, sUSD (SUSD) is trading at $0.70, 30% below its intended 1:1 peg with the US dollar, according to CoinMarketCap data.
sUSD reached as low as $0.66 before rebounding to $0.70 at the time of