On April 11th, according to Parsec analysis, the recent deviation of the Synthetix stablecoin sUSD from its peg is not due to bad debt or protocol failure, but rather a side effect of the SIP-420 mechanism adjustment. SIP-420 introduces a shared debt pool mechanism, where SNX stakers no longer individually mint sUSD and take on personal debt, but instead delegate funds to a public pool, achieving a structure with no liquidation or personal debt. However, when the sUSD price deviates from the peg value, stakers no longer have an incentive to buy back sUSD at a lower price to repay debts, causing the protocol's original self-adjustment mechanism to fail. At the same time, over $80 million in SNX flowed into the SIP-420 pool, combined with the Infinex activity driving holding growth, leading to rapid expansion of sUSD supply with a lack of corresponding demand in the market, further straining the peg mechanism.

Currently, sUSD has dropped to $0.87, with a deviation of over 13% from the peg. The Synthetix team has stated that they are rebuilding sUSD demand through integration with Aave, Ethena, and strengthening Curve incentives.