📉 Uh-oh! The sUSD stablecoin from Synthetix is crashing hard, dropping to just $0.66! 😳 Why? Well, blame it on SIP-420 – that new proposal shifted the debt risks from stakers to the protocol itself.
With SIP-420 in place, the collateral ratio plummeted from 450% to 200%, and old debts now come with a 12-month delay. 🕒 Talk about a major disincentive for stakers to pay up or grab those cheap stablecoins!
To make things even worse, seller pressure is piling on. The biggest risk for sUSD? Its collateral structure in SNX. If the token price drops, so does the collateral! 😱 When panic hits the market, everyone rushes for the exit, triggering a domino effect. We've seen this movie before with LUNA/Terra... 🎢 Be careful out there!