Synthetix is preparing for the recovery phase of sUSD when the pre-staking activity on the mainnet is activated.
Synthetix founder Kain stated that sUSD has gone through a difficult period but expects it to return to the peg by the end of the month when the new feature launches.
MAIN CONTENT
Synthetix is preparing to launch pre-staking activities on the mainnet.
sUSD once lost its peg and dropped to 0.73 USD due to the shared debt pool mechanism.
Founder Kain is optimistic about the return of sUSD this month.
What changes has Synthetix undergone that affect sUSD?
Synthetix implements the SIP-420 shared debt pool mechanism, which directly impacts the price of sUSD.
The shared debt pool mechanism was introduced to improve overall asset management efficiency but led to sUSD losing its peg, with prices dropping as low as 0.73 USD. This is a challenging time, requiring adjustments and improvements to maintain stability for this cryptocurrency ecosystem.
What does the founder of Synthetix say about the prospects of sUSD?
Kain, the founder of Synthetix, is committed to ensuring that sUSD will recover when the pre-staking feature on the mainnet is implemented.
According to Kain, although the recent period has been quite difficult, the launch of the pre-staking activity on the mainnet at the end of the month is expected to help sUSD return to its old peg, while also bringing the system back to a stable development trajectory, demonstrating Synthetix's ability to adapt and continuously improve.
(Price) will return soon. This phase is challenging, but I am optimistic that sUSD will return to its peg by the end of the month when the pre-staking activity on the mainnet is activated.
Kain, Founder of Synthetix, 9/8/2024
What does the pre-staking activity on the mainnet mean?
The deployment of pre-staking activities will facilitate the stability and growth of sUSD.
This activity helps attract and enhance liquidity, improves investor confidence, while affirming the transparency and operational efficiency of sUSD within the ecosystem. This recovery not only enhances user experience but also strengthens Synthetix's position in the cryptocurrency market.
How does the SIP-420 shared debt pool mechanism affect the price of sUSD?
The SIP-420 mechanism is a breakthrough in debt management but puts pressure on the price of sUSD in the short term.
By concentrating debt into a common pool, this mechanism supports risk balancing but simultaneously causes price fluctuations of sUSD during the initial deployment phase. This led to sUSD dropping to 0.73 USD, creating challenges but also providing a basis for optimization and more sustainable development in the long run.
Frequently Asked Questions
What impact does the launch of pre-staking activities on the mainnet have on sUSD?
This activity helps increase liquidity and stabilize the price of sUSD, bringing it back to its traditional peg.
How much has the price of sUSD decreased after SIP-420?
The price of sUSD once dropped to a low of 0.73 USD due to the implementation of the shared debt pool mechanism.
How does the shared debt pool mechanism affect the price of sUSD?
By concentrating risk into one pool, this mechanism increases short-term price volatility.
What is Kain's view on the future of sUSD?
He is optimistic that sUSD will recover to its peg when the pre-staking activity on the mainnet begins.
What does this move by Synthetix mean in the cryptocurrency ecosystem?
This is an important step to stabilize and grow the project, improving user experience.
Source: https://tintucbitcoin.com/synthetix-susd-du-bao-tro-lai-neo/
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