Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Synthetix officially launches sUSD 420 Pool to tackle ongoing stablecoin issues

Synthetix has launched a new liquidity initiative aimed at stabilizing its algorithmic stablecoin sUSD, which has been trading well below its intended $1 peg. The “sUSD 420 Pool,” Announced by founder Kain Warwick on X , the pool will reward participants with 5 million SNX tokens over 12 months in an attempt to curb the effects of the ongoing depeg. sUSD dropped to $0.8224 as of April 18, up over 7% in 24 hours, according to CoinGecko. It was trading as low as $0.63. The decline has been linked to recent protocol changes under Synthetix Improvement Proposal 420, which introduced a protocol-owned staking pool and lowered the collateralization ratio for minting sUSD from 500% to 200%. ???? The sUSD 420 Pool is launching with rewards starting in 36 hours ???? SNX stakers in the 420 Pool can deposit sUSD to earn a share of 5m SNX over 12 months – or 13,698.6 SNX daily ???? [1/5] pic.twitter.com/Xy5QUPthK9 — Synthetix ⚔️ (@synthetix_io) April 18, 2025 This change has caused a significant increase in sUSD supply, outpacing demand and leading to imbalances in decentralized exchange pools like Curve, where sUSD now makes up over 90% of some liquidity pairs. You might also like: SHIB whales eye new viral crypto as 10,000% rally predictions surface Locked and staked SNX The new 420 Pool requires SNX stakers to lock their sUSD for a year to earn daily SNX rewards. Those rewards will also be locked and vest over three months after the campaign ends. While official front-end support for the program launches next week, early access is available via Synthetix’s Discord. Synthetix has called the current phase a “transition period” and plans to support sUSD through additional incentives and new use cases, including the upcoming Snaxchain initiative. You might also like: Solana price steady above key support as active addresses, fees jump CoinTurk News

---

Altcoins struggle while stablecoins shine: Is this the new normal?

Stablecoins make major gains on market cap and transaction volumes as altcoin shrinks. CoinTurk News