Analysis: The sUSD decoupling was not caused by bad debt; the team is actively seeking to establish new demand channels to restore its peg.

BlockBeats News, April 11th, according to parsec analysis, Synthetix's stablecoin sUSD's decoupling was not due to bad debt or a protocol failure, but rather a side effect of SIP-420. The introduction of SIP-420 means that SNX stakers no longer individually mint sUSD and manage their own debt, but instead delegate their funds to a shared pool to achieve effects such as no liquidation and no personal debt; however, because debt is now concentrated in a public pool, when the sUSD trading price deviates from the peg, stakers no longer have a direct incentive or motivation to buy sUSD at a lower price to repay the debt—because it is no longer their debt, the once-existing self-adjusting defense mechanism has now disappeared.

In addition, over $80 million worth of SNX flowed into the 420 pool, coupled with position increases driven by Infinex activities, the sUSD supply expanded significantly, yet there was no corresponding demand to offset the supply increase, and the market lacked the pressure to restore the peg. The Synthetix team stated that they are building new demand channels, such as integrating with Aave and Ethena and strengthening Curve incentive mechanisms.

Currently, sUSD has decoupled by over 13%, falling to $0.87.