Synth USD (Optimism)

sUSD

sUSD is a synthetic derivative of USD collateralized with SNX token at a 3:1 ratio.

Risk Rating
Good
$1.00
0.19%
Summary
What we like
Offers a fully decentralized method to gain exposure to a non-volatile store of value that is backed purely by SNX.
What we like less
sUSD is a synthetic derivative of USD that could lose peg in volatile market conditions as decreases in the SNX collateral value results in the position becoming undercollateralized.
What it means for you
sUSD enables you to gain synthetic exposure to other assets on-chain with zero slippage and also a great way to put USD to work for you in DeFi.
Information
Blockchain
  • Optimism
Key Metrics
  • Market Cap: $46.4M
  • Fully Diluted Valluation: $46.4M
  • FDV / MC: 1
  • Ranking inside Exponential (among stables): #21
  • Circulating Supply: 46,410,426
  • Total Supply: 46,410,426
  • Total Supply: 46,410,426
  • Volume (24H): $2.1M
  • ATH: $2.45 (02/18/2020)
  • ATL: $0.43 (03/18/2020)
Risk Assessment
Good
Asset Strength

sUSD is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Synthetix, a protocol rated as Moderately Risky. sUSD is a synthetic derivative of the USD, and is overcollateralized with SNX tokens by at least a 3:1 ratio. The asset has an uncapped supply but has inflation control or burn mechanisms in place.

sUSD is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value.

Asset Volatility

sUSD is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value.

Dependencies

Synthetix

Things to know about sUSD

How does sUSD work?

sUSD is a synthetic asset created on the Synthetix platform. It is minted against the value of the native SNX token which acts as the primary form of collateral backing synthetic assets available on Synthetix. All Synths are currently backed by a 400% collateralizatoin ratio, though this can change through future governance proposals. SNX stakers incur debt when they mint Synths and burn Synths to exit the system. SNX holders are incentivized to stake their SNX token to earn their proportional fees each week, as well as inflationary rewards. Stakers are unable to claim fees if the value of their collateralization ratio falls below 400%, which ensures Synths are backed by sufficient collateral to absorb large price movements.

Why trade sUSD?

Synthetic assets like sUSD provide users with exposure to USD without holding the underlying asset. This offers a major benefit in terms of lowering friction when swapping between different assets. All Synth trades are executed against the contract, or known as peer-to-contract trading. sUSD always remains constant at 1 USD, and can be converted into other Synths using the Kwenta trading platform. This provides infinite liquidity up to the total amount of collateral in the system, zero slippage and permissionless on-chain trading.

How secure is sUSD?

sUSD can be minted permissionlessly through the platform and does not have any reliance on centralized entities like WBTC. A risk to be aware of involves the debt SNX holders issue when they stake their SNX and mint sUSD. This debt can fluctuate due to price movements within the system, which means that stakers may ultimately have to burn more sUSD than they originally minted to exit the system and unlock their staked SNX. Lastly, there are still a number of system functions that are still centralized such as the use of proxy contracts which provides greater control to the engineering team to ensure contracts can be easily upgraded.

sUSD Pools