sUSD's predecessor was nUSD, and was issued by the Havven Foundation. It will be created directly in the issuer's wallet and paid prorated by the number of nominations posted by each user to improve liquidity. The stability of sUSD is maintained by the Foundation's direct market intervention.

Project Introduction

Synthetix is ​​a decentralized synthetic asset issuance protocol based on Ethereum. These synthetic assets are guaranteed by Synthetix Network Token (SNX), and synthetic assets (Synths) can be issued as long as SNX is locked in a smart contract. The staking pool model allows users to perform conversions between Synths directly using smart contracts without the need for counterparty.

sUSD hook

sUSD pegging is crucial for a well-functioning system, as traders need liquidity and stability between sUSD and other crypto assets to profit from trading. sUSD is traded on the open market and therefore has the potential to fall below the same level as the US dollar. Incentives need to be taken to ensure that the price deviation of the pegged is minimal, while SNX holders are motivated to correct the price deviation through arbitrage.

The main mechanism for maintaining the sUSD peg is that after SNX mortgagors create debts and sell their minted Synths, they reduce debts by repurchasing sUSD at a price lower than their face value to reduce debts. There are other ways to keep this hook, including increasing the collateral rate, thereby reducing the supply of Synths to suit demand. Introducing liquidation is another option for situations where sUSD hooks are not maintained. These programs can only be implemented after the community debates through our SIP process (which will be discussed next).

Current Synths

There are currently four categories of Synths available: fiat currency, commodities, cryptocurrencies and reverse cryptocurrencies. Our fiat currency Synths include sUSD, sEUR, sKRW, etc.