On April 18, 2025, the stablecoin sUSD from Synthetix crashed below $0.7, reaching a five-year low of $0.664, according to CoinGecko. This is the deepest depeg in recent years, caused by changes in the protocol following the implementation of proposal SIP-420. This reform reduced the collateralization level from 750% to 200% and transferred the debt to a collective pool, eliminating the arbitration mechanism that previously incentivized stakers to buy sUSD at a discounted price to repay debts.