Synthetix founder threatens SNX stakers with ‘the stick’ to fix SUSD depeg
Synthetix founder Kain Warwick has threatened SNX stakers with “the stick” if they don’t take up a newly launched staking mechanism to help fix the protocol’s ongoing sUSD (SUSD) depeg.Warwick said in an April 21 post to X that it has now implemented a sUSD staking mechanism to address the depeg, but admitted it is currently “very manual” without a proper user interface. However, once the UI goes live, Warwick said, if there isn’t enough momentum, then they may have to “ratchet up the pressure” on the stakers in the sUSD 420 pool.The sUSD 420 Pool was a new staking mechanism introduced on April 18 by Synthetix that would reward participants with a share of 5 million SNX tokens over 12 months if they locked their sUSD for a year in the pool. “This is very solvable and it is SNX stakers responsibility. We tried nothing which didn’t work, now we have tried the carrot and it kind of worked but I’m reserving judgement,” he said.“I think we all know how much I like the stick so if you think you will get away with not eating the carrot I’ve got some bad news for you.”Source: Kain WarwickSynthetix sUSD is a crypto-collateralized stablecoin. Users lock up SNX tokens to mint sUSD, making its stability highly dependent on the market value of Synthetix (SNX).Synthetix’s stablecoin has faced several bouts of instability since the start of 2025.
Read the full article at cointelegraph.com
Source: cointelegraph.com
Published: April 21, 2025
