Synthetic’s sUSD Stablecoin De-Pegs, Plummets to $0.92

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Synthetic’s decentralized stablecoin, sUSD, fell below its $1 peg, reaching as low as $0.92 before recovering to $0.96 due to increased selling on decentralized exchanges. Chao Labs discovered that the de-pegging was triggered by a major liquidity provider withdrawing from Curve’s sBTC/wBTC liquidity pool. As the stablecoin managed to recover to $0.96, a user exchanged their sBTC for sUSD, amassing 4.48 million sUSD, and continued to sell sUSD in the sUSD Curve pool, swapping other assets to maintain bitcoin exposure. This led to a further decline of sUSD to $0.93.