Synthetix (SUSD) stablecoin drops below $0.70, reaching new all-time lows

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.

Synthetix's native stablecoin, Synthetix USD (SUSD), has slipped further away from its US dollar peg, reaching new all-time lows of $0.70. However, the firm says that 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.

At the time of writing, sUSD is trading at $0.70, almost 31% down from its intended 1:1 peg with the US dollar, according to CoinMarketCap data.

For the past week, SNX has dipped just 1.08%, trading at $0.63. However, from a broader view of the overall crypto market downturn, SNX has fallen approximately 26% over the past 30 days.

The spokesperson explained that sUSD's short-term volatility is being driven by structural shifts after the SIP-420 launch, a proposal that shifts debt risk from stakers to the protocol itself.

They added that the firm has short, medium, and long-term plans to mitigate the risks. In the short term, Synthetix will continue supporting liquidity for sUSD through Curve pools and deposit campaigns on its derivatives platform, Infinex.

For mid-term measures, Synthetix has introduced "simple debt-free" SNX staking that will encourage individual debt repayment.

Over the long term, the firm will make capital efficiency changes through the 420 Pool, take over protocol-level management of sUSD supply, and introduce new "adoption-focused mechanisms" across Synthetix products.

"We are committed to ensuring the long-term stability of sUSD and will continue to monitor the situation closely and adjust our plans as needed to maximize the efficient use of protocol resources in this unique market environment," the spokesperson stated.