Synthetix Doubles Down on sUSD Peg Restoration Ahead of Mainnet Perps Launch

On May 30, Synthetix approved the sUSD peg protocol update through SCCP-409. This update aims to restore the sUSD stablecoin to its intended $1.00 peg. The change involves a sharp increase in staking requirements for legacy stakers under the ongoing debt jubilee. This is effective from June 2nd, 23:59 UTC. All SNX holders with debt must now stake 20% of their original debt in sUSD, doubling the previous threshold of 10%. The new staking rule forms part of a larger sUSD peg upgrade. The protocol is combining this with treasury buybacks, targeted liquidity incentives, and the Infinex campaign. These combined efforts have already lifted sUSD’s value from a low of $0.70 to near $0.96, with the final push now in motion.

Debt Jubilee Participation Now Requires 20% sUSD Stake

Legacy stakers participating in the debt jubilee must meet the new 20% sUSD staking condition or face an indefinite pause of their benefits. The debt jubilee was introduced under SIP-420 to reduce historical debt burdens, but its success was hindered by stakers who dumped their sUSD holdings. The updated requirement targets more committed protocol participation. Stakers are now required to deposit sUSD to the 420 Pool. This move supports the peg restoration while deterring speculative or reckless activity. Protocol data shows the previous 10% stake brought sUSD close to parity, but a higher ratio is needed to complete the repeg.

sUSD Peg Upgrade Gains Momentum with Treasury and Incentive Actions

The protocol’s treasury has stepped in, buying back $2 million worth of sUSD to support the stablecoin’s price. Parallel campaigns on Curve, Infinex, and within the 420 Pool continue to provide liquidity incentives to stakers and traders. Multi-pronged efforts aim to stabilize the ecosystem and increase capital efficiency. Synthetix’s approach blends protocol-level controls with market-based incentives. These combined levers have already resulted in strong upward momentum for sUSD. Maintaining this pace remains essential, as sUSD underpins the entire Synthetix derivatives ecosystem. Restoring sUSD to $1.00 helps make trading and earning yields more predictable across the platform.

New 420 Pool Streamlines SNX Staking Experience

The 420 Pool now serves as Synthetix’s central staking mechanism, replacing the legacy solo staking system. It introduces a protocol-managed environment with no collateral ratio, liquidations, or manual debt management. SNX holders can now stake directly and earn yields from both Synthetix and its external integrations. Unified staking system removes complexity and enables yield generation without legacy burdens. The upgrade includes “Simple SNX Staking” for users with no outstanding debt. Participants commit SNX for 12 months, earning rewards that vest gradually. Withdrawals are allowed after a seven-day cooldown, though early exits reduce unvested rewards. The model aims to create predictable, passive returns for SNX holders while supporting the network’s long-term sustainability.

Mainnet Expansion and Delegated Staking Ahead 

Protocol prepares for next-gen perpetuals and broader adoption of staking upgrades. With the sUSD peg nearing full restoration, Synthetix is shifting its focus toward future deployments. The upcoming launch of v4 perpetuals on Ethereum Mainnet marks a new era of high-performance trading. This launch will build on the repegged sUSD and the streamlined 420 Pool infrastructure. At the same time, Synthetix is phasing out legacy staking models. Delegated staking is now the preferred method, aimed at reducing friction for token holders. These changes set the stage for greater scalability, broader user participation, and deeper liquidity across Synthetix markets.