Synthetix founder threatens SNX stakers with ‘the stick’ to fix SUSD depeg
Kain Warwick, founder of Synthetix, has warned SNX stakers to engage with a new sUSD staking mechanism or face increased pressure. The sUSD staking mechanism, launched on April 18, aims to address the stablecoin's depeg issue, currently trading at around $0.77, down from its intended $1 peg. The new sUSD 420 Pool offers rewards of 5 million SNX tokens over 12 months for locking sUSD for a year. Warwick emphasized the importance of staker participation, stating that the financial resources to resolve the issue exist among SNX stakers. Synthetix's sUSD has experienced instability since early 2025, with previous depegging incidents noted in other stablecoins like USDC and TUSD. A spokesperson attributed recent volatility to structural shifts following the SIP-420 proposal, which transferred debt risk from stakers to the protocol. The stablecoin market has seen significant growth, surpassing $200 billion in capitalization by early 2025.
