Synthetix's stablecoin, sUSD, has further deteriorated in value, falling below $0.70 and hitting a low of $0.68. This decline results in sUSD being nearly 31% off its intended 1:1 peg with the US dollar, marking new all-time lows. Synthetix attributes the short-term volatility to structural adjustments following the launch of SIP-420. In response to the instability, Synthetix has outlined short, medium, and long-term strategies, including supporting liquidity through Curve pools, introducing simple debt-free SNX staking, and enhancing capital efficiency through protocol management of sUSD supply. Synthetix's spokesperson emphasized that improvements to stability mechanisms for sUSD are in development amid ongoing market fluctuations, which have seen SNX, Synthetix's native token, remaining relatively stable despite the broader crypto market downturn.

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