Synthetix is under scrutiny due to the depegging of its stablecoin, sUSD, which has affected SNX trading in Korea. Major exchanges like Upbit and Bithumb have suspended SNX deposits until the observation period ends in May, following a warning from the Digital Asset Exchange Association of Korea (DAXA).
The depegging is attributed to changes in the incentive structure rather than a mechanical failure. Synthetix’s founder, Kain Warwick, has proposed measures including a USD 420 pool incentivized by 5 million SNX tokens to stabilize sUSD’s value, highlighting systemic risks in stablecoin management.
This incident raises important questions regarding the stability and regulatory oversight of decentralized finance protocols, reinforcing the need for stronger risk management strategies and staker protections in the ecosystem.
Full story here: https://coincu.com/334017-korea-daxa-synthetix-snx-depegging
