Synthetix’s sUSD Stablecoin Regains Peg, Challenges Explained by Founder

Synthetix founder Kain.eth confirmed that the stablecoin sUSD has fully re-established its peg, currently valued at $1.05. Kain.eth highlighted how Synthetix’s debt pool design and staking incentives, while instrumental in the protocol’s growth, also presented significant hurdles. Hidden debt inflation and market shocks nearly triggered the protocol’s collapse. The 420 pool facilitated a restructuring process and rebuilding phase, with pooled staking expected to simplify operations and attract new stakers. The revised incentive framework aims to maintain the peg rate and restore confidence in the system.