The cryptocurrency space witnessed a significant event as sUSD, the stablecoin of the Synthetix protocol, dropped to $0.68 on April 18, 2025, deviating 31% from its 1:1 peg with the US dollar. Stablecoins like sUSD play a vital role in decentralized finance by offering price stability. However, a protocol shift (SIP-420) led to sUSD depegging by reducing collateralization and altering incentives. This change, combined with market factors, caused a surplus of sUSD, destabilizing its value. Synthetix is working on solutions to stabilize sUSD, including introducing new incentives. It's crucial for users to understand the risks associated with crypto-collateralized stablecoins like sUSD and diversify their stablecoin exposure to mitigate potential depegging risks. Synthetix's recovery plan aims to restore sUSD's peg and enhance the ecosystem's stability through upgrades and incentives. Read more AI-generated news on: https://app.chaingpt.org/news