Synthetix's sUSD Battles Its Price Gap

Ever since SIP-420 modified the process through which Synthetix (SNX) resolves its debt, its stablecoin sUSD is still trading at less than its $1 target. 

Though that has some hodlers concerned, the team has been hard at work to mend it. They’ve introduced some incentives to get people to buy when it’s cheap, and the price has nudged up to about $0.95.

The returns are also looking quite amazing as of right now—for staking with sUSD in the 420 Pool, you’re getting a juicy 70% annual percentage yield. That’s certainly catching attention (and questions about sustainability). And Synthetix now wants stakers to hold some sUSD themselves, sort of having skin in the game. 

But the vast majority of people are not going along with this, which prevents instability.

The solution is not the quick fix that the team knows it to be, however. They’re gambling with their mainnet perps exchange in development to generate real, organic demand for sUSD. But they’re not content to just sit around and wait: 

Starting yesterday (May 15, 2025), they’re conducting daily buybacks up to $1 million, and all on public markets to keep things transparent.

If that does pan out, then may be we will see a lot more traders using sUSD, which may help it adhere more closely to that dollar mark. 

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