The DeFi project Synthetix has just announced the launch of a sUSD stablecoin buyback program in the open market with a maximum daily limit of 1 million USD, aiming to respond to the recent price drop that caused sUSD to fall to 0.93 USD - significantly lower than the 1:1 peg with USD. This move is intended to support market demand and gradually bring the sUSD price back to a stable level.
The buyback program will be implemented through open market trading activities, serving as a temporary measure during the transition period to strengthen confidence in the sUSD price stabilization mechanism and maintain the reputation of the Synthetix protocol in the decentralized finance (DeFi) ecosystem.
Previously, Synthetix had implemented several initiatives to support the sUSD price, including a bonus event on the Infinex platform and an sUSD staking program through the "420 Pool". Notably, this staking program currently offers an annual percentage yield (APY) of up to 72%, with participants required to maintain a minimum sUSD staking ratio of 10%. These measures have initially helped stabilize the sUSD price in the short term.
However, Synthetix emphasizes that their long-term goal is to ensure the stability of sUSD through natural market demand, rather than relying entirely on incentive mechanisms or buyback programs. The implementation of this buyback plan is seen as a necessary stepping stone to maintain stability while the system continues to develop and adapt to market fluctuations.
