Synthetix to Raise sUSD Collateralization Ratio to 20% for Peg Restoration Amid Price Fluctuations

On May 30th, COINOTAG reported significant changes concerning the Synthetix platform and its efforts to stabilize the sUSD stablecoin. Effective June 2nd at 23:59 UTC, users participating in SNX debt staking will need to elevate their collateralization ratio from 10% to 20%. This adjustment is critical to maintain the 1:1 peg of sUSD to the US Dollar, especially in light of previous instances where debt stakers sold off their sUSD, leading to its value plummeting to approximately $0.70. While the implementation of a 10% collateralization requirement did aid in recovering the price to around $0.96, the path to achieving a stable peg remains challenging. Synthetix emphasized that once sUSD reaches price stability, the platform will focus on advancing pivotal projects, including 420 pool operations and perpetual contracts on the Ethereum mainnet.